Chile’s peso rose for a sixth straight day in the longest winning streak since January as international investors reduced their bets against the currency to a six-month low.
The currency appreciated 0.1 percent to 475.33 per U.S. dollar at the close in Santiago.
International investors in the Chilean peso forwards market reduced net shorts to $6.7 billion on Dec. 7, the lowest since May. The peso is catching up with copper, which rallied 6.8 percent in the past month as China’s industrial production expanded at the fastest pace in eight months in the year through November. A short is a bet an asset will lose value.
“It’s back where it should be given the fundamentals of the Chilean economy and what’s going on in the world,” said Eugenio Cortes, the head of currency forwards at EuroAmerica Corredores de Bolsa SA. “Copper has rebounded on the Chinese data. The dollar has been falling, but it may now be a bit oversold, and some of the offshore investors could look to take profit.”
On Dec. 6, Chilean banks had their biggest bets against the dollar in the spot market since April.