Chilean Currency Declines From Three-Month High as Copper Drops
The currency depreciated 0.1 percent to 471.55 per U.S. dollar at 10:03 a.m. in Santiago, paring its weekly gain to 0.4 percent. The peso advanced yesterday to 470.95, the strongest closing level since Sept. 26.
China is the world’s biggest buyer of copper, which accounted for 61 percent of Chile’s exports last month. The metal fell 0.7 percent today as China’s consumer prices rose 2.5 percent last month from a year earlier, compared with the median forecast of 2.3 percent in a survey by Bloomberg.
“Commodities are a bit weaker on China inflation,” said Ronald Volpi, the head of spot currency trading at EuroAmerica Corredores de Bolsa SA in Santiago. “Copper’s falling, so we could see the dollar higher.”
The peso has rallied 1.5 percent in January, the best performance after the Romanian leu and Mexican peso among 25 emerging-market currencies.
International investors in the Chilean peso forwards market cut their short peso position to $3.1 billion on Jan. 9, the lowest since September 2011. Local investors reduced bets on the peso to $15.3 billion, the lowest since October 2011.
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