Chilean Peso Rises to Two-Week High as Economy Beats Forecast
Chile’s peso advanced to a two-week high after a report showed the nation’s economy grew in October faster than forecast.
The peso gained for a third day, appreciating 0.5 percent to 477.10 per dollar at the close in Santiago, the strongest since Nov. 22. Futures on copper, Chile’s biggest export, fell 0.7 percent after closing yesterday at a six-week high.
“Investment funds are betting heavily on the peso given the country’s growth outlook,” Francisco Schneider, the head of currency trading at Celfin Capital SA, said by phone from Santiago. “There’s still space for the peso to continue appreciating.”
Economic activity grew 6.7 percent in October from a year earlier, the central bank reported yesterday. The median forecast of 16 analysts in a Bloomberg survey was for 6.2 percent expansion.
The currency has also gained as a widening current account deficit encouraged speculation that the central bank will increase the target lending rate to cool spending.
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