Chilean Peso Decreases for Second Day as Copper Prices Tumble

Aug. 5 (Bloomberg) –Chile's peso fell for a second day as copper tumbled to a five-week low.

The peso lost 0.2 percent to 463.55 pesos per U.S. dollar at 10:54 a.m. New York time, from 462.73 yesterday. The currency has dropped 1.3 percent this week.

Chile's peso is under pressure from the "precipitous fall in equities and copper," analysts from 4Cast Inc., led by Pedro Tuesta, wrote in a note to investors. "All will depend on whether S&P can finally bottom out."

The Standard & Poor's 500 Index decreased 0.6 percent, erasing gains from earlier in the day. The index plummeted 4.8 percent yesterday, the most since 2009, fueling concern the world's largest economy could be grinding to a halt.

Copper, which accounts for half of Chile's exports, fell 1.2 percent on the New York Metals Exchange to the lowest since June 28.

Chile's one-year interest-rate swap rate, which reflects traders' views of future rates, was unchanged at 5.37 percent.