Jan. 29 (Bloomberg) -- Chile’s peso rose after international investors reduced bets against the currency to a 16-month low.
The peso appreciated 0.2 percent to 471.90 per U.S. dollar at the close in Santiago, extending its rally since the end of 2011 to 10 percent, the most among major Latin American currencies tracked by Bloomberg.
International investors in the Chilean peso forwards market had a $1.2 billion short peso position on Jan. 25, the lowest since September 2011, according to data published today by the central bank. A short is a bet an asset will lose value.
“The underlying trend is for appreciation,” said Matias Madrid, chief economist at Banco Penta in Santiago. He said he expects the peso will strengthen beyond 470 in “coming days.”
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