Chilean Peso Touches Two-Week Low as Cyprus Spurs Bid for Refuge
Chile’s peso touched a two-week low after turmoil in Cyprus spurred demand for a refuge in the dollar and as copper prices declined.
The peso was little changed at 473.15 per U.S. dollar at 10:52 a.m. in Santiago after touching 473.40, its weakest intraday level since March 6. The price of copper, Chile’s biggest export, dropped 0.2 percent in New York after rising as much as 1.4 percent.
The European Central Bank said it may cut Cypriot banks off from emergency funds after March 25 as the island nation’s president, Nicos Anastasiades, pursued options at home and in Russia to stave off financial collapse.
“Everybody is looking at what will happen in Cyprus,” Alexis Osses, an analyst at xDirect Chile Ltda. in Santiago, said in a telephone interview. “If there is a run on banks, then demand for dollars will jump.”
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