Chilean Peso Gains From 16-Week Low on Mining Companies’ Demand
Chile’s peso climbed from a 16-week low as mining companies bought the local currency to meet payroll commitments.
The peso appreciated 0.2 percent to 483.9 per U.S. dollar at the close in Santiago. It closed yesterday at 484.78 per dollar, the weakest since July 26, as concern that growth in Europe and the U.S. is weakening further sapped demand for emerging-market currencies.
Chile’s peso led gains today among major Latin American currencies. The peso generally outperforms on Thursdays, when mining companies sell dollars to obtain local currency for paychecks. On average over the past four years, the peso has appreciated 0.2 percent on Thursdays and weakened or remained little changed on the other days of the week.
“The dollar has been gathering strength in response to market noise,” said Alejandro Araya, a trader at Banco Santander Chile in Santiago. “Today’s super-Thursday, so there’s a chance of peso appreciation if the markets accompany us.”
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