Chilean Peso Depreciates on U.S. Stimulus Outlook, Copper Drop
Chile’s peso weakened as reduced expectations for further Federal Reserve stimulus boosted the U.S. dollar and after copper, the Andean nation’s top export, fell to the lowest since November.
The peso ended the session in Santiago less than 0.1 percent lower at 473 per dollar after touching 473.4, according to data compiled by Bloomberg. The Dollar Index, which measures the greenback against the currencies of major trading partners, rose 0.5 percent to 82.466.
The greenback rallied after the Philadelphia Fed President Charles Plosser said the central bank should slow the pace of its bond purchases because the potential costs from more stimulus outweigh the benefits. U.S. companies added more workers in February than economists forecast, a private report based on payrolls indicated today.
“We still see differing views on when the U.S. should end its stimulus measures,” Sergio Tricio, head of research at ForexChile, said in an interview.
Copper fell 0.6 percent in New York amid a rise in inventory levels and as a stronger dollar made commodities less appealing as an alternative investment.
The peso rose 0.3 percent yesterday, its biggest gain in six weeks, after the central bank reported that a proxy for gross domestic product expanded 6.7 percent in January from a year earlier, beating the median forecast of 6.5 percent growth in a survey of economists by Bloomberg.
To contact the reporter on this story: Eduardo Thomson in Santiago at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com