Dec. 1 (Bloomberg) -- The Chilean peso snapped a three day losing streak as the price of copper rose, stocks gained and the euro appreciated against the U.S. dollar.
The peso advanced 0.4 percent to 485.45 per U.S. dollar as of 9:30 a.m. New York time from 487.25 per dollar at yesterday’s close. The currency fell as low as 489.35 per dollar yesterday, the weakest level in three weeks.
The euro, which yesterday sank through $1.30 for the first time in 10 weeks, gained amid speculation that European Central Bank policy makers may tomorrow decide to extend bond purchases. Spain said it would sell its stake in the country’s lottery and end a monthly jobless payment in a bid to plug the third-largest budget deficit in the euro region.
“The euro has rebounded strongly, copper too, and stocks in Europe and Dow Jones futures have risen,” said Flavio Magnasco, chief economist at Banco Falabella in Santiago. “The peso is moving in line with that.”
Copper for March delivery gained 1.9 percent to $3.8965 a pound, the highest intraday level in two weeks.
The South African rand and Canadian dollar gained 0.8 percent and the Australian dollar 0.5 percent.
Chilean interest-rate swap rates, which measure traders’ views of likely future interest rates, fell after the central bank said policy makers considered halting rate rises in November.
The extra yield, or spread, investors demand to buy Chile’s 10-year bonds in dollars fell four basis points to 76 basis points today as U.S. Treasury yields rose, according to prices compiled by Bloomberg.
To contact the reporter responsible on this story: Sebastian Boyd in Santiago at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos in New York at