We reconstructed changes of temperature, salinity, and productivity within the southern Peru-Chile Current during the last 8000 years from a high-resolution sediment core recovered at 41°S using alkenones, isotope ratios of planktic foraminifera, biogenic opal, and organic carbon. Paleotemperatures and paleosalinities reached maximum values at ∼5500 years ago and thereafter declined to modern values, whereas paleoproductivity continuously increased throughout the last 8000 years. We ascribe these long-term Holocene trends primarily to latitudinal shifts of the Antarctic Circumpolar Current (ACC). The concurrence with shifts in the position of the Southern Westerlies points to a common response of atmospheric and oceanographic circulation patterns off southern Chile. Millennial- to centennial-scale fluctuations of paleo temperatures and paleosalinities, on the other hand, lag displacements in the position of the Southern Westerlies but reveal a significant correlation to short-term temperature changes in Antarctica, indicating a high-latitude control of the ACC at these timescales.