Chilean Peso Declines to Lowest Level Since Recession in 2009

Chile’s peso fell to its weakest close since the country’s 2009 recession after a report showed that the Latin American country’s economic deceleration was steeper than expected.

The currency slid 0.9 percent to 577 per dollar at the close in Santiago. The two-year swap rate tumbled five basis points, or 0.05 percentage point, to 3.25 percent as traders projected more reductions by the central bank. The yield on 10-year inflation-linked government bonds fell to 1.71 percent, the lowest since the start of the data in 2005.