Chile’s peso gained as Spain kept its investment-grade credit rating from Moody’s Investors Service, easing sovereign-debt concern and buoying emerging- market assets.
The peso advanced 0.1 percent to 472.35 per U.S. dollar at 10:35 a.m. in Santiago. The currency has closed in a range of 470 to 476 per dollar in each session for the past six weeks as speculation that Chile’s central bank may try to block an advance prevented it from appreciating.
All except five of the 25 emerging-market currencies tracked by Bloomberg rallied against the dollar today as Moody’s maintained Spain’s Baa3 credit rating, one step above junk, while assigning a negative outlook. The company said Spain’s refinancing risk has been reduced because of the European Central Bank’s willingness to buy the nation’s debt.
“Spain is the main driver today,” said Andres de la Cerda, a money markets trader at Bice Inversiones. “The peso is marginally higher than yesterday, in line with the external environment. Everything’s positive.”
It will be difficult for the peso to trade weaker than 470 per dollar “because of concern about central bank intervention,” he said.
International investors in the Chilean peso forwards market cut their short peso position by $406 million to $7.7 billion on Oct. 12, the lowest in two months, according to data published today by the central bank.
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