Chile peso, stocks slump with global markets

SANTIAGO, July 1 (Reuters) - Chile's stock and currency markets followed global markets lower on Tuesday, as surging oil prices stoked inflation fears.

After slumping to intraday levels not seen since April 2007, the peso <CLP=CL> ended 0.04 percent lower at 525.20/525.70 per dollar compared with Monday's close at 525.00/525.50.

It was a new 10-month low for the peso, as jittery markets first drove up the value of the dollar, but then took profits in late trade.

The central bank continued on Tuesday with its daily dollar purchases of $50 million on the currency exchange as part of an $8 billion intervention program begun in April to curb the peso's strength after the dollar fell to 430 pesos in March.

On the Santiago Stock Exchange, indexes deepened losses in afternoon trade with the all-market IGPA .IGPA slumping 2.87 percent to 14,227 points, while the blue-chip IPSA index .IPSA retreated 2.23 percent to 2,933 points.

"We're basically following international markets," said Patricio Hernandez, an analyst with brokerage Banchile. "The issue of oil prices is having an impact and markets are really nervous."

Hernandez also said the local market wasn't helped much by Monday's worse-than-expected industrial production figures, which did little to counteract projections for another central bank interest rate hike this month given 12-month inflation of near 9 percent on the back of higher food and oil prices.

The government is scheduled to report the June consumer price index on Thursday.

Cross-sector losses on Tuesday were led by large retailers Ripley RIP.SN with a slide of 4.92 percent and Cencosud CEN.SN, down 4.1 percent.