Chilean Peso Drops as Global Concern Saps Emerging-Market Demand
The currency depreciated 0.6 percent to 481.62 per U.S. dollar at the close in Santiago. Copper for March delivery dropped as much as 0.6 percent before erasing its decline.
The peso slid as U.S. politicians prepared for talks to avoid $607 billion of automatic tax increases and spending cuts set to take effect next year. Euro-area finance ministers are meeting today in Brussels to negotiate a bailout payment for Greece. The dollar rose as much as 0.2 percent against the currencies of major U.S. trading partners as investors sought refuge.
“Markets are negative because of Greece and the U.S. budget,” said Ronald Volpi, the head of spot currency trading at EuroAmerica Corredores de Bolsa SA in Santiago. “We’re seeing buying of dollars.”
International investors in the Chilean peso forwards market trimmed their bets against the currency to $7.1 billion on Nov. 22, the lowest since May, according to data published today by the central bank.
To contact the reporter on this story: Sebastian Boyd in Santiago at firstname.lastname@example.org