Bloomberg News

Chilean Peso Weakens on Europe as Market Resumes After Holiday

December 09, 2011

Dec. 9 (Bloomberg) -- Chile’s peso fell as traders, returning from a public holiday, priced in yesterday’s declines in other emerging-market currencies and copper, the country’s main export.

The peso weakened 0.4 percent to 509.95 per U.S. dollar at 1:27 p.m. in Santiago from 508.06 on Dec. 7. Chilean markets were closed yesterday for Immaculate Conception Day.

Global stocks and commodities slumped yesterday as the European Central Bank damped speculation it would boost sovereign-debt purchases and regulators said the region’s lenders need to raise more capital than previously estimated. The Bloomberg JPMorgan Latin America Currency Index fell 0.8 percent yesterday, the most in two weeks.

“Yesterday was a very negative day for markets,” Ronald Volpi, head of spot currency trading at EuroAmerica Corredor de Bolsa SA, said by telephone. “The peso should trade in a 508- 511 range while the market waits for the outcome of the meetings in Europe.”

The peso strengthened on Dec. 7, while most other Latin American currencies weakened, after a report showed inflation of 0.3 percent in November, exceeding economists’ estimates.

--Editors: James Attwood, Brendan Walsh

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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


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