Chile Peso Extends Weekly Drop as Copper Falls on Supply Boost
Chile’s peso extended its weekly decline to the steepest in a month after the price of copper, the nation’s main export, fell on rising stockpiles.
The currency depreciated 0.6 percent today to 478.11 per U.S. dollar at the close in Santiago, the weakest level since Dec. 5, deepening its drop this week to 0.9 percent. The peso rallied on Dec. 14 to 473.98, the strongest since Oct. 18. Copper was headed for a 3.2 percent decline from a week earlier to $3.5655 a pound.
“The depreciation in the week can be explained by copper,” said Eugenio Cortes, the head of currency forwards at EuroAmerica Corredores de Bolsa SA in Santiago.
Copper accounts for more than half of Chile’s exports. Stockpiles monitored by the London Metal Exchange rose 15 percent this week to the highest since February.
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