Chile Peso Rises From 16-Week Low as U.S. Prospects Buoy Copper
Chile’s peso rose from a 16-week low after the central bank reported faster-than-forecast growth and as copper gained on optimism a U.S. deal can be reached to avoid automatic spending cuts and tax increases.
The peso appreciated 1.1 percent to 479.75 per U.S. dollar at 12:07 p.m. in Santiago after falling to 484.79 on Nov. 16, the weakest close since July 26. Copper for March delivery rose 1.8 percent to $3.525 a pound on the Comex in New York today.
The MSCI World Index of global stocks advanced 1.7 percent on speculation the U.S. economy may avoid $600 billion of tax increases and spending cuts in January. House Speaker John Boehner and White House Press Secretary Jay Carney described a Nov. 16 meeting on the so-called fiscal cliff as constructive.
“There are expectations of a deal soon,” said Francisco Schneider, the head of foreign exchange at Celfin Capital SA. “Markets are more optimistic.”
Chile’s economy grew 5.7 percent in the three months through September from a year earlier, the central bank reported today. That is the second straight quarter the economy has beaten the median forecast of economists surveyed by Bloomberg.
The two-year swap rate rose six basis points, or 0.06 percentage point, to 5.06 percent. The three-year rate rose six basis points to 5.11 percent.
To contact the reporter on this story: Sebastian Boyd in Santiago at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org