Chile Peso Posts Longest Losing Streak in Three Months on Copper
Chile’s peso dropped for a fourth day, the longest losing streak in three months, on a decline in the price of copper, the country’s principal export.
The peso fell 0.1 percent to 472.08 per U.S. dollar at the close in Santiago.
Speculation that policy makers will act to stem advances is mounting after Finance Minister Felipe Larrain wrote a Feb. 4 commentary in the Financial Times indicating that limits on foreign-exchange exposure for banks may help slow appreciation.
“As soon as the rate approaches 470, some investors start buying dollars on fear of verbal intervention or measures from the central bank,” Cristian Donoso, a trader at Banco de Chile, said in a phone interview from Santiago.
Copper fell 2.1 percent in New York amid concern that China may introduce measures to curb property price increases and U.S. homebuilder confidence unexpectedly dropped.
The peso’s closing level has ranged from 470.24 per dollar to 518.49 per dollar in the past 12 months.
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