Chile Peso Falls for Fifth Day as U.S. Stocks, Copper Tumble
Chile’s peso fell for a fifth day, its longest losing streak since January, as copper slid and U.S. stocks tumbled, diminishing demand for riskier emerging market assets.
The peso declined 0.1 percent to 473.52 pesos per U.S. dollar at 1:48 p.m. New York time, from 472.97 yesterday.
“Our currency has been showing a strong correlation with the Dow and the S&P 500,” Andres de la Cerda, a trader at Bice Inversiones, said in a telephone interview from Santiago.
U.S. stocks fell, following the biggest gain since 2009 for benchmark indexes, amid concern that Europe will fail to contain its sovereign-debt crisis and that the U.S. economic recovery is faltering. The Standard & Poor’s 500 Index slipped 2.2 percent to 1,146.52. The Dow Jones Industrial Average lost 2.6 percent to 10,953.42.
Copper, which accounts for half of Chile’s exports, dropped 1.5 percent on the New York Mercantile Exchange, weakening the country’s terms of trade. The metal has fallen for six of the past seven sessions.
Chile’s one-year interest-rate swap rate, which reflects traders’ views of future rates, fell 16 basis points, or 0.16 percentage point, to 4.90 percent. It has fallen for the last ten sessions in a row, its longest losing streak since December 2008.
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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