Chilean Peso Gains as China Reserve Decision Spurs Risk Demand
Chile’s peso headed for its biggest gain in two weeks after China’s decision to reduce bank reserve requirements spurred demand for riskier emerging-market assets.
The peso strengthened for a third day, advancing 0.6 percent to 481.66 per U.S. dollar at 9:37 a.m. in Santiago, from 484.54 on Feb. 17.
“European stocks are up after China’s decision today and that is boosting appetite for emerging-market assets,” Matias Madrid, an economist at Banco Penta, said in phone interview.
China’s central bank decided to cut the proportion of cash that lenders must set aside by half a percentage point beginning Feb. 24, according to a statement published Feb. 18. European officials will try to settle remaining disputes today as they close in on a 130 billion-euro ($171 billion) Greek bailout.
The euro rose as much as 1 percent, European stocks gained as much as 1.2 percent and copper, Chile’s main export, increased as much as 2.7 percent.
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