Chile’s peso depreciated for a third day as a retreat in copper prices amid signs of weaker demand in China dimmed the outlook for the South American country’s biggest source of export revenue.
The peso retreated 0.1 percent to 471.8 per U.S. dollar at 9:49 a.m. in Santiago. The price of copper, Chile’s main export product, fell 1.2 percent.
“Copper had a fall so that is driving the peso,” Matias Madrid, an economist at Banco Penta, said in telephone interview from Santiago.
Metal prices declined today as a report showed retail sales in China rose at the slowest pace since 2009 during last week’s Lunar New Year festival. European stocks fell after companies including Carlsberg A/S missed earnings estimates.
“The fall today isn’t huge and the peso could resume an upward trend that could make it break the 470 level,” Madrid said.
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