Chile’s peso fell to the lowest in almost two weeks amid selling by foreign investors who had been buying the currency last week.
The currency weakened 0.3 percent to 473.03 per U.S. dollar at the close in Santiago. It was the lowest price on a closing basis since Jan. 16. The peso climbed 0.1 percent against the dollar last week, the third straight weekly increase.
“We have been seeing a lot of selling of pesos by foreigners today,” said Ronald Volpi, head of spot currency forwards at EuroAmerica Corredores de Bolsa SA in Santiago. “A week ago they were buying but today they’re cutting positions.”
International investors in the Chilean were buying last week to offset “short” contracts that allow them to bet on a future decline in the currency’s value, central bank data showed. Their net short position stood at $1.5 billion on Jan. 24, the smallest since September 2011, according to data published today by the central bank.
week ago they were buying but today they’re cutting positions.”
International investors in the Chilean peso forwards market trimmed their net bets on a future decline in the currency to $1.5 billion on Jan. 24, according to data published today by the central bank. That was the smallest net-short position since September 2011.