Chilean peso falls

Chile's peso hit a five-year low and stocks traded sharply lower in early afternoon trade on Wednesday, as growing recession fears battered global markets and boosted the dollar. After sliding more than 4 percent to a five-year intra-day low in morning trade, Chile's peso pared its loss to 1.8 percent at 646.00/647.00 per dollar. On Tuesday the currency closed at 634.20/634.70 per dollar.
"I think there's pessimism and fear of an imminent US recession. We knew the optimism of recent weeks wouldn't last," a trader said. Copper, which accounts for more than half the value of Chilean exports, fell below $2 per pound, brushing levels not seen since November 2005 as commodity prices retreated. That compares to average prices for the year-to-date of $3.61/lb and record levels of $4.07/lb in July.