Chilean Peso Gains for Second Day as U.S. Numbers Buoy Copper

Chile’s peso strengthened for a second day, trimming a weekly decline, as copper rose on signs the world’s biggest economy is healthier than expected.

The peso gained 0.2 percent to 517.45 per U.S. dollar as of 10:35 a.m. in Santiago from 518.5 yesterday, reducing a drop this week to 1.5 percent. The Bloomberg JPMorgan Latin American Currency Index rose 0.6 percent today.

Copper, which accounts for more than half of Chile’s exports, rose as much as 3.4 percent in New York. U.S. stock futures rose after initial jobless claims unexpectedly fell to a tree-year low yesterday and Federal Reserve measures of manufacturing in the New York and Philadelphia regions beat estimates.

“Markets are positive basically because of yesterday’s data and the employment numbers especially,” said Ronald Volpi, head of spot currency trading at EuroAmerica Corredores de Bolsa SA. “Commodities are up, and that means the dollar is down. There is still dollar buying though.”

The peso may trade between 151 and 518 today, Volpi said.

Offshore investors increased their net short position in the Chilean peso in the local forwards market to $5.2 billion on Dec. 14 from $5 billion a day earlier, according to central bank data.

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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