By Sagarika Jaisinghani
Sept 28 (Reuters) – The Chilean peso firmed on Monday as President Sebastian Pinera launched a $2 billion fiscal aid program, while the Brazilian real tumbled 1% to extend a three-week losing streak.
A basket of regional currencies .MILA00000CUS was down 0.3% against a weaker dollar. Chile’s peso CLP= firmed 0.3% after Pinera said on Sunday the subsidies would be aimed at creating new jobs or recovering those lost during months of coronavirus-driven lockdowns. FRX/
The currency has recovered sharply from its March lows, but remains about 4% down on the year as the pandemic hammered Chile’s commerce, services and tourism sectors and drove unemployment to over 13%, its highest level in a decade.
The peso, however, has far outperformed Brazil’s real BRBY, which plumbed new lows in 2020 despite a constitutional reform bill aimed at simplifying and reducing the cost of the public sector