Chilean Peso Gains as Copper Rises on U.S. Durable Goods Orders
Chile’s peso gained as copper, the country’s biggest export, jumped on higher-than-forecast orders for durable goods such as aircraft, cars and washing machines in the U.S.
The peso rose 0.7 percent to 504.90 per U.S. dollar as of 10:28 a.m. in Santiago, trimming its decline this quarter to 3.3 percent. The Bloomberg JPMorgan Latin American Currency Index gained 0.3 percent today.
Copper for September delivery gained as much as 1.2 percent and U.S. stocks advanced after orders for durable goods rose more than forecast in the world’s biggest economy. The euro weakened ahead of a meeting of European Union leaders starting tomorrow in Brussels at which they will seek a solution to the region’s debt crisis.
“There was improved data in the U.S. and copper is rising,” said Rodrigo Sarra, a currency trader at Celfin Capital in Santiago. “The volatility will continue until Friday when we know the outcome of the European summit. The market isn’t expecting much but it is very attentive.”
International investors in the Chilean peso forwards market had a $10 billion short peso position on June 25, up from $9.8 billion on June 22, according to central bank data published today.
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