Feb. 13 (Bloomberg) -- Chile’s peso rose to a three-week high as emerging-market currencies appreciated after Group of Seven policy makers criticized market interventions.
The peso appreciated 0.3 percent to 470.65 per dollar at the close in Santiago, the strongest level since Jan. 24. The greenback dropped today against 16 of 25 emerging-market currencies tracked by Bloomberg.
Chilean policy makers will probably leave the benchmark lending rate at 5 percent for a 13th straight month at their meeting tomorrow, according to all 17 economists surveyed by Bloomberg. The peso has gained since G7 officials make the comments yesterday, said Alejandro Cuadrado, the head of Latin American currency strategy at Banco Bilbao Vizcaya Argentaria SA in New York.
“We’re right at the border of 470,” Cuadrado said. “Our forecast is moderately below that line but we do see people stepping out at 470 so a consistent break through is going to be difficult.”
Group of Seven ministers and central bank governors reiterated their “longstanding commitment to market determined exchange rates” in a statement yesterday.
International investors in the Chilean peso forwards market had a $1.5 billion net bet against the currency on Feb. 11, down from $1.6 billion on Feb. 8, according to data published today by the central bank.
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