Feb. 1 (Bloomberg) -- Chile’s peso rose to a four-year high against the yen and has reached a level against its biggest trading partners that in 2008 spurred the central bank to intervene to stem the gains.
The peso rose 0.4 percent to 5.1187 per yen at the close of currency trading in Santiago, the highest since September 2008. The peso was little changed against the dollar at 471.46.
“Although we’re flat against the dollar, appreciation against other currencies has continued,” said Ruben Catalan, an economist at Banco de Credito & Inversiones in Santiago.
The currency as measured against a basket of the euro, yen, pound, dollar and Canadian dollar reached its strongest since April 2008 in the first two weeks of January, according to central bank data. That’s a level that provoked the central bank to intervene in April 2008 and January 2011.
Japan bought $8.4 billion of Chile’s exports last year, the most after after China and the U.S., according to central bank data. The yen is at its weakest level versus the dollar since 2010.
“I am still very comfortable being long pesos against the yen,” said Sebastian Brown, an economist and currency strategist at Barclays Plc in New York.
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