Chilean Peso Gains After Italy Bond Sale, U.S. Data Boost Demand
Chile’s peso appreciated after Italy reached its target in a bond sale and U.S. data showed company spending and home sales rose faster than forecast, boosting appetite for riskier assets such as emerging-market currencies and stocks.
The peso strengthened 0.1 percent to 473.03 per U.S. dollar at the close in Santiago. The peso has traded between 472 and 475 per dollar since Feb. 20.
Italy sold 6.5 billion euros ($8.5 billion) of five- and 10-year bonds in its first auction since inconclusive election results. An index of U.S. pending home sales increased more than forecast and durable goods orders excluding transportation gear climbed the most in a year in January, helping boost U.S. stocks.
“The dollar’s weaker today because we are stabilizing after the sell-off,” said Katia Diaz, an economist at 4Cast Inc. in New York. “The peso’s ranges are getting tighter as the global market stabilizes, but given the falling copper price and the uncertainty from the Italian elections we’ll continue to trade within a range until there’s a bigger trigger.”
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