Bloomberg News

Chile Peso Snaps Longest Losing Streak Since 2010 on Copper Gain

February 25, 2013

Chile’s peso ended a seven-session stretch of losses, its longest since June 2010, as copper rose and the dollar weakened against emerging-market counterparts.

The currency appreciated 0.1 percent to 473.09 per U.S. dollar at 10:22 a.m. in Santiago. Copper for May delivery climbed 0.5 percent to $3.5670 a pound on the Comex in New York. The dollar weakened against 19 of 25 emerging-market currencies tracked by Bloomberg.

“Commodities are rising and the dollar is weaker against most currencies,” said Cristian Donoso, a currency trader at Banchile Corredores de Bolsa SA in Santiago.

Refined-copper imports by China, the biggest buyer of Chile’s principal export, climbed 1.8 percent in January, China’s General Administration of Customs said today. Intercontinental Exchange Inc.’s Dollar Index, which tracks the greenback against the currencies of major U.S. trading partners, fell today the most since January.

International investors in the Chilean peso forwards market more than doubled net bets against the Andean currency to $2.5 billion on Feb. 21, according to data published today by the central bank. The $1.4 billion increase was the most since the central bank started publishing daily data in October 2008 and came a day after U.S. Federal Reserve minutes indicated that policy makers were divided over the strategy of buying bonds to support the economy.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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