Chile’s peso headed for its biggest gain in two weeks after China’s decision to reduce bank reserve requirements spurred demand for riskier emerging-market assets.
The peso strengthened for a third day, advancing 0.6 percent to 481.66 per U.S. dollar at 9:37 a.m. in Santiago, from 484.54 on Feb. 17.
“European stocks are up after China’s decision today and that is boosting appetite for emerging-market assets,” Matias Madrid, an economist at Banco Penta, said in phone interview.
China’s central bank decided to cut the proportion of cash that lenders must set aside by half a percentage point beginning Feb. 24, according to a statement published Feb. 18. European officials will try to settle remaining disputes today as they close in on a 130 billion-euro ($171 billion) Greek bailout.
The euro rose as much as 1 percent, European stocks gained as much as 1.2 percent and copper, Chile’s main export, increased as much as 2.7 percent.
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