RBS Recommends Betting Chile Peso to Gain Against U.S. Dollar

The Chilean peso’s sell-off last week means it is time to buy the currency, according to Royal Bank of Scotland Group Plc.

Investors should go long two-month Chilean peso non- deliverable forwards with a target of 473.1 per U.S. dollar, Flavia Cattan-Nasluasky and Felipe Hernandez, analysts based in Stamford, Connecticut, wrote today in a note to clients. Investors should exit the trade if the forwards weaken to 494 per dollar, they said.

The peso fell 0.9 percent to 491.53 per dollar as of 8:42 a.m. in Santiago.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.