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Chile peso falls to all-time low

Wednesday 29 September 1999 18:02 EDT
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CHILE'S PESO crumbled to an all-time low against the dollar for the second day running yesterday, as worries over the Latin American region unsettled the markets. After an hour's dealing, the local currency had dropped to 531.70 against the dollar, breaking the psychological 530 barrier and plunging almost two pesos below Tuesday's close of 529.60 - its previous historic weak point.

Nervousness about Ecuador's debt situation and ongoing unease at Brazil's embattled currency was behind the fall, dealers said. Prospects of a hike in U.S. interest rates, which could lure funds away from emerging markets like Chile, have been unsettling the Chilean forex market for more than a week.

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