Chile Peso Falls as Copper Tumbles Most in Nearly Two Weeks
Chile’s peso fell, ending a three-day winning streak, as copper declined the most in almost two weeks after U.S. payrolls rose less than forecast in June, damping growth prospects.
The peso dropped 0.3 percent to 462.61 per dollar at 10:16 a.m. New York time, from 461.02 yesterday. The currency has gained 0.6 percent this week.
“The price of copper has been rising strongly in the last few days, but that flipped today, and the peso responded in turn,” Alejandro Puente, an economist at Banco Bilbao Vizcaya Argentaria SA, said in a phone interview from Santiago.
Copper, which accounts for half of Chile’s exports, fell 1 percent today on the New York Mercantile Exchange, its biggest decrease since June 27.
Labor Department figures showed U.S. employers added 18,000 workers in June, less than the median economist forecast of 105,000, while the unemployment rate unexpectedly climbed to 9.2 percent, indicating a struggling labor market.
Chile’s one-year interest-rate swap rate, which reflects traders’ views of future rates, fell seven basis points to 5.71 percent.
To contact the reporter on this story: Bryan Gibel in New York at bgibel@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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