Home / Metal News / Lead / Chile Peso Strengthens as Copper Rises, Extending Weekly Gain
Chile Peso Strengthens as Copper Rises, Extending Weekly Gain
Aug 22,2011 10:11CST
industry news
Source:SMM
Chile's peso rose, extending a weekly gain, as copper advanced, strengthening the country's terms of trade.

Aug. 20 (Bloomberg) –Chile's peso rose, extending a weekly gain, as copper advanced, strengthening the country's terms of trade.

The peso climbed 0.4 percent to 468.39 pesos per U.S. dollar at 2 p.m. New York time, from 470.41 yesterday. The currency rose 0.5 percent during the week.

"Copper has strengthened a little bit, which helps the peso," Cristian Donoso, a trader at Banchile Corredora de Bolsa, said in a telephone interview from Santiago. "The dollar has also weakened some, which is favorable for the peso's exchange rate."

The U.S. dollar fell 0.4 percent against the euro and 0.9 percent against the Swiss franc. Copper, which accounts for half of Chile's exports, climbed 0.2 percent to $3.99 per pound in New York.

Chile's one-year interest-rate swap rate, which reflects traders' views of future rates, fell 16 basis points, or 0.16 percentage point, to 4.75 percent, the lowest level in six months.

The yield on Chile's benchmark dollar denominated government bonds due in 2020 fell one basis point, or 0.01 percentage point, to 3.10 percent.

Chile's central bank paid an average of 468.93 pesos per U.S. dollar for $50 million today, part of its $12 billion effort to limit the peso's gains, according to data posted on the bank's website.

For Related News and Information:

 

peso;copper

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn