Chile peso closes lower as global markets slump

SANTIAGO Oct 22 (Reuters) - Chile's peso closed 1.29 percent lower on Wednesday, clawing its way back from a deeper early session loss of over 4 percent, as growing recession fears battered global markets and boosted the dollar.

Chile's peso CHILJ CLP=CL ended the session at 642.50/643.00 per dollar, compared with Tuesday's close at 634.20/634.70. In morning trade the peso fell to its lowest intraday level since October 2003.

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. (Reporting by Froilan Romero; Writing by Lisa Yulkowski; Editing by James Dalgleish)