Bloomberg News

Chilean Currency Gains as Mining Companies Buy Pesos for Pay

February 02, 2012

Feb. 2 (Bloomberg) -- Chile’s peso gained the most in two months as mining companies in the biggest copper-producing nation sold dollars to meet liabilities and the dollar fell against the majority of its most-traded counterparts.

The peso strengthened 1.4 percent to 480.15 per U.S. dollar from 487.04 yesterday, the biggest advance since Nov.30.

Thursday is the best day to hold Chilean pesos as mining companies tend to sell dollars they get for exports to raise pesos to meet paychecks. In the four years through today, the peso strengthened on average 0.12 percent on Thursdays and depreciated on the other four days, according Bloomberg calculations. The dollar weakened as stocks and growth-linked currencies rose, boosting demand for higher-yielding assets.

“There’s very little flow but there are mining companies selling dollars, as they always do,” said Cristian Donoso, a trader at Banchile Corredores de Bolsa SA in Santiago. “This week there has been a drought of corporate flows as managers are on vacation and decisions aren’t being taken. Every Thursday mining companies sell dollars, but the other companies that would maybe buy are absent this week.”

As of 11:29 a.m., $802 million had traded in the Chilean peso market, according to data from the electronic stock exchange. Last year an average of $1.3 billion changed hands a day on 251 trading days, according to exchange data.

Offshore investors raised their bets against the peso in the forwards market to $4.2 billion on Jan. 31 from a 12-week low of $4.1 billion on Jan. 30.

--Editors: James Attwood, Richard Richtmyer

To contact the reporter on this story: Sebastian Boyd in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

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