Chile’s peso rose to a two-week high as copper, the country’s biggest export, climbed after the European Central Bank said the region’s economy is improving.
The peso appreciated 0.2 percent to 472.08 per U.S. dollar as of 11:10 a.m. in Santiago, and earlier reached 471.9 per U.S. dollar, the strongest level since Feb. 19.
The euro gained and copper rallied after Standard & Poor’s raised its outlook for Portugal’s credit rating, easing concern about the euro-area debt crisis, and Goldman Sachs Group Inc. said its bullish on the metal. European Central Bank President Mario Draghi said economic activity will recover in 2013.
“The euro is rising and copper is rebounding a bit from yesterday,” said Eugenio Cortes, the head of currency forwards at EuroAmerica Corredores de Bolsa SA in Santiago. “We’re in a lateral range and without a structural or fundamental change it’s hard for the peso to break the range.”
The peso has traded in a range of 469.1 to 476.3 per dollar for the past 45 trading sessions. Thirty-day volatility in the peso held close to a 15-year low and volatility over 90 days fell to the lowest since 2007.
International investors in the Chilean peso forwards market increased their net bets against the currency to $3.1 billion on March 5, the highest since Jan. 10, according to data published today by the central bank.
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