April 3 (Bloomberg) -- Chile’s central bank is less likely to step in to weaken the currency after its monetary policy report yesterday, according to Banco de Credito & Inversiones.
The real exchange rate, an inflation-adjusted measure of the currency’s strength against trading partners, is within a range consistent with economic fundamentals, the central bank said yesterday as it raised its growth forecast for this year.
“It’s pretty definitive,” Felipe Alarcon, an economist at BCI in Santiago, said in a telephone interview. “The central bank says its working assumption is that the real exchange rate is within range and that it’s consistent with long-term fundamentals. That’s a major non-intervention signal.”
Volatility in the currency has been the lowest in 15 years as concern the central bank would intervene prevented the peso from appreciating through 470 per U.S. dollar.
The peso slid 0.1 percent to 472.45 per U.S. dollar at 11:30 a.m. in Santiago, paring its rally in 2013 to 1.4 percent. The currency has traded in a range of 471 to 474 per dollar since March 15.
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