Chile’s peso dropped from a two-month high as copper, the country’s main export, fell and a report showed that manufacturing in the U.S. retreated more than economists forecast.
The peso depreciated 0.2 percent to 474.75 per U.S. dollar at 12:43 p.m. in Santiago after closing Dec. 14 at 473.98, the strongest level since Oct. 18.
“The peso fluctuated in the morning and started to weaken after the publication of the index in the U.S.,” Francisca Roa, an analyst at Netgociando.com, said in a phone interview. “It’s now following other markets, particularly the euro and copper.”
The Federal Reserve Bank of New York’s general economic index dropped in December to minus 8.10 from minus 5.22 in a fifth month of contraction. The median forecast of 55 economists surveyed by Bloomberg was for a reading of minus 1. Readings of less than zero signal decline in New York, northern New Jersey and southern Connecticut.
Copper retreated as much as 1 percent in New York as stockpiles monitored by the London Metal Exchange increased the most in more than four years. The euro declined almost 0.1 percent to $1.3170.