Nov. 19 (Bloomberg) -- Chile’s peso rose from a 16-week low after the central bank reported faster-than-forecast growth and as copper gained on optimism a U.S. deal can be reached to avoid automatic spending cuts and tax increases.
The peso appreciated 1 percent, the most since Sept. 25, to 480.08 per U.S. dollar in Santiago after falling to 484.79 on Nov. 16, the weakest closing level since July 26. Copper for March delivery rose as much as 2.6 percent to $3.55 a pound on the Comex in New York today.
The MSCI World Index of global stocks advanced as much as 2 percent on speculation the U.S. economy may avoid about $600 billion of tax increases and spending cuts in January. House Speaker John Boehner and White House Press Secretary Jay Carney described a Nov. 16 meeting on the so-called fiscal cliff as constructive.
“There are expectations of a deal soon,” said Francisco Schneider, the head of foreign exchange at Celfin Capital SA. “Markets are more optimistic.”
Chile’s economy grew 5.7 percent in the three months through September from a year earlier, the central bank reported today. That is the second straight quarter the economy has beaten the median forecast of economists surveyed by Bloomberg.
The two-year swap rate rose six basis points, or 0.06 percentage point, to 5.06 percent. The three-year rate rose six basis points to 5.11 percent.
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