Chile’s peso advanced from its lowest level this month on an increase in the price of copper, the country’s biggest export.
The peso’s gain was limited by dollar purchases in the local market, according to Ronald Volpi, head of spot currency trading at EuroAmerica Corredores de Bolsa SA in Santiago.
“Copper is up more than 1 percent,” Volpi said. “The peso should be stronger. The only explanation is that there’s a lot of real demand for dollars.”
The currency appreciated 0.2 percent to 487.75 per U.S. dollar, from 488.60 yesterday, when it touched 490.25, the weakest intraday level since March 29. The Bloomberg JPMorgan Latin American Currency Index rose 0.2 percent to 105.57 today.
Copper rose as much as 1.7 percent in New York after data showed a jump in orders to remove the metal from London Metal Exchange warehouses. Copper makes up half of Chile’s exports.
The dollar fell against most Latin American currencies after the Netherlands sold bonds, easing concern Europe’s sovereign-debt crisis is spreading to its strongest economies.
To contact the reporter on this story: Sebastian Boyd in Santiago at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org