March 19 (Bloomberg) -- Chile’s peso held within the range it has maintained for the past two weeks as 90-day volatility fell to its lowest level since 2006.
The peso declined 0.2 percent to 472.85 per U.S. dollar at the close in Santiago, having weakened from a one-month high of 470.89 reached March 12. It has stayed in a range of 470 to 474 per dollar since March 5.
Thirty-day volatility, a gauge of the magnitude of the currency’s average daily fluctuations over the past month, is at the lowest since 1998. Faster-than-forecast growth and stable interest rates have offset concern that the central bank may intervene to weaken the currency.
“I have never seen a market in the same range for so long,” said Alejandro Araya of Banco Santander Chile in Santiago, who has traded the currency for 20 years. “It can’t continue.”
The peso reached the strongest level in two decades against a group of 20 major trading partners in February, according to central bank data.
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