Chile’s Peso Falls in Longest Losing Streak Since May on CopperEduardo Thomson
Chile’s peso weakened versus the dollar for a sixth day, its longest stretch of losses in nine months, as a decline in the price of copper eroded the outlook for export revenue.
The currency fell less than 0.1 percent to 473.31 per dollar at the close in Santiago. The peso has retreated 0.6 percent from its high this month of 470.65 reached Feb. 13.
“The peso has been following the evolution of global markets during the last week,” Eugenio Cortes, the head of currency forwards trading at EuroAmerica Corredores de Bolsa SA, said in a phone interview. “Copper has been falling, so has the euro, and stock markets a little less, so it’s impossible for the peso to be unaffected by that.”
Copper, Chile’s main export, retreated 1.5 percent on concern the U.S. Federal Reserve will slow the pace of economic stimulus and as China sought to rein in real estate growth.
Some Fed policy makers said the central bank should be ready to vary the pace of bond purchases, known as quantitative easing, minutes of the January meeting showed yesterday. Chinese Premier Wen Jiabao called on local authorities to “decisively” curb property speculation.