Chile’s peso gained as copper, the country’s principal export, rose past $3.50 a pound for the first time in a week on speculation China will take steps to boost economic growth.
The peso gained 0.2 percent to 511.55 per U.S. dollar as of 10:54 a.m. in Santiago, from 512.54 yesterday.
China is the biggest buyer of Chile’s copper, which makes up more than half the Andean country’s exports. Chinese Premier Wen Jiabao last week called for a greater focus on growth in the world’s second-largest economy, spurring speculation the nation would step up measures to boost expansion. Stocks rose in Asia, the U.S. and Europe.
“Copper is up, U.S. stocks are up and the euro is up,” said Cristian Donoso, a trader at Banchile Corredores de Bolsa SA in Santiago. “With the world as it is today, paying 512 pesos for a dollar is expensive.”
To contact the reporter on this story: Sebastian Boyd in Santiago at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com