Bloomberg News

Chilean Peso Climbs for a Sixth Straight Day on Greek Optimism

July 01, 2011

July 1 (Bloomberg) -- Chile’s peso strengthened for a sixth straight day, its longest winning streak in 2011, on rising copper prices and signs that Greece will avoid a default, leading to increased demand for riskier emerging-market assets.

The peso advanced 0.4 percent to 465.28 per U.S. dollar at 3:50 p.m. New York time, from 467.22 yesterday. The currency increased 1.9 percent for the week. It rose during seven consecutive days in the period ended Dec. 9.

“Risk aversion, in general, has been declining over the last several days on the back of the improvements in the negotiations on the Greece front,” Roberto Melzi, a Latin America strategist at Barclays Capital in New York, said in a telephone interview. “That’s the key driver that is pushing riskier assets to stronger levels.”

Greece may receive as much as 85 billion euros ($124 billion) in new financing, including a contribution from private investors, in a second bailout aimed at preventing default and ending the euro-region’s debt crisis, according to an Austrian Finance Ministry official.

Copper, which accounts for half of Chile’s exports, gained as much as 0.7 percent today in New York, reaching its highest price since April 26.

Chile’s central bank paid an average of 465.91 pesos per U.S. dollar for $50 million as part of a $12 billion effort to limit the peso’s gains, according to data posted on the bank’s website.

--Editors: Glenn J. Kalinoski, Richard Richtmyer

To contact the reporter on this story: Bryan Gibel in New York at bgibel@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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