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Chile's Peso Leads Gains in Emerging Markets as Copper Advances

  • Correlation with commodity jumps to highest since May 2014
  • Chinese copper smelters to cut 2016 output as prices tumble

The Chilean peso led gains among emerging-market currencies as copper, the nation’s chief export, rallied after Chinese smelters said they’ll cut output to bolster prices.

The peso strengthened 1.2 percent to 703.02 per dollar Tuesday, the most since Sept. 16. Copper advanced as suppliers including Jiangxi Copper Co. and Tongling Nonferrous Metals Group Co. pledged to reduce production next year by 350,000 metric tons. That’s about 4.4 percent of China’s annual output in 2014. The correlation of the currency with the commodity climbed to the highest level since May 2014, according to data compiled by Bloomberg.