Chilean Peso Declines as Slower German Growth Saps Copper Prices
Chile’s peso dropped for a third straight day as copper, the nation’s biggest export, fell after report showed Germany’s economic growth slowed in 2012.
The currency also fell on speculation the central bank may take steps to slow its advance after the peso touched a three- month intraday high of 469.10 per dollar on Jan. 8.
“Below 470, fears of verbal intervention increase though we don’t expect actual intervention until below 460,” said Cristian Donoso, a trader at Banchile Corredores de Bolsa SA in Santiago, referring to the dollar versus the peso.
Germany’s gross domestic product may have dropped as much as 0.5 percent in the final three months of last year from the third quarter, the Federal Statistics Office reported today in a preliminary estimate, leaving Europe’s largest economy at the brink of recession. It reported that economic growth slowed to 0.7 percent in 2012 from 3 percent in 2011. Copper, used in new homes and cars, often rises or falls on changing expectations for global expansion.
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