Aug. 12 (Bloomberg) -- Chile’s peso rose for a second day as copper and global stocks advanced after U.S. government data showed an increase in retail sales last month.
The peso climbed 0.1 percent to 470.73 pesos per U.S. dollar at 1:32 p.m. New York time, from 471.15 yesterday. It fell 1.2 percent for the week.
“The improvement in copper prices is an improvement in Chile’s terms of trade, which puts appreciative pressure on the peso,” Osvaldo Cruz, an economist at Banco de Credito e Inversiones, said in a telephone interview from Santiago. “The decrease in risk aversion in the markets means investors are more apt to bet on emerging market currencies.”
Copper, which accounts for half of Chile’s exports, rose as much as 1.2 percent to $4.08 a pound on the Comex in New York.
U.S. stocks rose after data showed U.S. retail sales climbed in July by the most in four months. European stocks climbed, extending the Stoxx Europe 600 Index’s rally from a two-year low, as France, Spain, Italy and Belgium imposed short-selling bans.
Chile’s one-year interest-rate swap rate, which reflects traders’ views of future rates, rose 10 basis points, or 0.10 percentage point, to 5.06 percent.
To contact the reporter on this story: Bryan Gibel in New York at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org