Chilean Peso Gains as Eased Greek Concern Supports Copper Prices
Chile’s peso rose for the first time in four days as copper, its main export, rallied after concern eased that Greece may leave the euro and precipitate a deeper economic crisis in the euro region.
Copper for July delivery rose as much as 1.4 percent to $3.4975 a pound in New York as six opinion polls showed Greece’s New Democracy party, which supports the European Union bailout plan, topping polls before elections in June. Stocks rose in Europe and Asia, and the euro appreciated to $1.2542 on a U.S. holiday.
“We started off well because the opinion polls in Greece showed the conservatives winning,” said Ronald Volpi, head of spot currency trading at EuroAmerica Corredores de Bolsa SA. “With the U.S. out, there’s very little liquidity and any flow will tend to move the dollar.”
The peso appreciated 0.2 percent to 508.65 per dollar as of 9:33 a.m. in Santiago. It earlier reached 507.30.
Offshore investors in the Chilean peso forwards market increased their short peso position to $10.2 billion on May 24, passing $10 billion for the first time since the central bank began publishing the data in 2008. Local investors had a $17.4 billion long peso position.
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