Chile’s peso extended its longest losing streak since June 2010 as declining copper prices dimmed trade prospects of the metal’s top-producing nation amid concern that an economic slowdown in China will damp global demand.
The peso weakened 0.2 percent to 492.10 per U.S. dollar as of 11:44 a.m. in Santiago from yesterday’s 491.25 closing price at 1:30 p.m. The currency fell to as low as 494.05, the weakest since January, in after hours trading yesterday, according to data compiled by Datatec. The Bloomberg JPMorgan Latin American Currency Index declined 0.2 percent.
Copper, Chile’s main export, fell as much as 0.6 percent in New York, heading for a fourth straight drop. The peso is on a six-day losing streak after breaking through key technical levels yesterday when China, the biggest buyer of Chilean copper, lowered its annual growth target.
“Yesterday’s adjustment to China’s growth outlook resulted in a massive correction,” said Alejandro Araya, a currency trader at Banco Santander Chile in Santiago. “The market’s taking a break after a big movement yesterday but it’s moving more towards 500 per dollar than 490 per dollar.”
The deadline for a Greek debt swap that would help the country avoid a disorderly default runs out tomorrow.