Chilean Peso Depreciates on Rajoy’s Comments, Economic Data
Chile’s peso weakened after comments from Spanish Prime Minister Mariano Rajoy stoked concerns that Europe’s debt crisis may deepen.
The peso fell 0.1 percent to 481.15 per dollar as of 12:43 p.m. in Santiago. The dollar gained against all but three of the 25 emerging-market currencies tracked by Bloomberg.
Spain will delay a decision on whether or not to ask for a sovereign bailout until it is clear what is being offered, Rajoy said today. The U.S. dollar strengthened to the highest in a week against its major counterparts and global stocks fell the most in three weeks as Japan reported a drop in retail sales, data showed rising unemployment in Germany and South Korea reported manufacturer’s confidence near the lowest level since 2009.
“Markets are negative, stocks are down and that’s supporting the dollar” and hurting the peso, said Ronald Volpi, the head of spot currency trading at EuroAmerica Corredores de Bolsa SA in Santiago.
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