Chile’s peso gained as copper, the country’s chief export, reached a seven-week high on speculation central banks may add more stimulus to the global economy.
The peso rose 0.7 percent to 497.12 per U.S. dollar at 10:52 a.m. in Santiago.
The European Central Bank will cut its main interest rate to an all-time low this week, according to a Bloomberg News survey, and a state-owned newspaper in China said the reserve requirement for banks should fall. Copper reached the highest since May 15 on the Comex in New York as commodities gained.
Yesterday was a market holiday in Chile.
“Today copper is pretty strong and the market has reacted positively to the U.S. factories data, too,” said Andres de la Cerda, a money markets trader at Bice Inversiones in Santiago.
Orders placed at U.S. factories rose in May for the first time in three months, the Commerce Department said today.
Copper makes up half of Chile’s exports. The price of the metal drives the volume of dollars entering the country and the value of the peso.
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