Chilean Peso Declines After Draghi Leaves Market Wanting More

Chile’s peso slid after European Central Bank President Mario Draghi said Germany has reservations about a bond-buying plan to contain the region’s sovereign-debt crisis.

The peso depreciated 0.2 percent to 484.35 pesos per U.S. dollar at the close in Santigago.

Draghi acknowledged concern among members of Germany’s Bundesbank over the bond-buying plan, indicating the 23-member ECB governing council has yet to reach an agreement. Global stocks fell and copper, Chile’s principal export, declined to the lowest in more than a month after Draghi’s comments, which didn’t include an announcement about immediate measures to boost growth in the euro region.

“It left the market wanting more,” said a trader at Bice Inversiones in Santiago. “What Draghi said didn’t meet expectations, and that has hit everything and strengthened the dollar.”

International investors in the Chilean peso forwards market cut bets against the peso on July 31 to $8.4 billion, the lowest since May 14, according to data published today by the central bank.

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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