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Chile’s peso was little changed as trading resumed from yesterday’s public holiday after weaker manufacturing in the euro region countered expansion in the U.S.
The currency traded at 485.05 per U.S. dollar as of 11:09 a.m. in Santiago from 485.05 on April 30 and earlier weakened as much as 0.3 percent to 486.45. Chilean interest-rate swaps fell to the lowest in eight weeks as copper, the nation’s biggest export, led a slump in metals prices.
Manufacturing in the euro area fell and unemployment reached a 15-year high, fanning concern that the region’s economic slump may deepen. Data published yesterday, when Chilean markets were closed, showed manufacturing in the U.S. grew at the fastest pace in almost a year last month.
“Yesterday markets reacted positively to the U.S. data and today they have turned negative in response to news from Europe,” said Alejandro Araya, a currency trader at Banco Santander Chile in Santiago. “Yesterday’s data is offsetting today’s.”
Chile’s two-year interest-rate swap rate dropped six basis points, or 0.06 percentage point, to 5.15 percent. The one-year swap rate fell seven basis points to 5.13 percent.
Copper, which accounts for more than half of Chile’s exports, declined as much as 2 percent to $3.7665 a pound on the Comex in New York today.
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