SANTIAGO, Sept 3 (Reuters) - Chile Finance Minister Felipe Larrain said on Tuesday that conditions on the South American nation’s foreign exchange market did not yet justify intervention, even as the Chilean peso has continued to fall against a strengthening dollar.
Chilean trader Tanner said this week that intervention by Chile’s Central Bank could be warranted should the peso fall to 740 to the dollar. The peso was trading at 724 to the dollar around mid-day on Tuesday.
“That’s a decision that the central bank would need to take if and when those scenarios take place, and we haven’t gotten there yet,” Larrain told reporters.
Chile’s peso has weakened alongside its sputtering economy, as festering global trade tensions and a plummeting copper price take their toll.
Reporting by Natalia Ramos; writing by Dave Sherwood; Editing by Dan Grebler