The Chilean peso rose today as copper jumped, bolstered by the optimistic outlook for resolution of the debt crisis in the European Union.
Futures for delivery of copper in December jumped 13 percent from the low of $2.994 on October 3 to $3.3955 per pound on COMEX. Copper is the main export of Chile.
Optimism, caused by the promise of France’s and Germany’s leader to recapitalize the European bank and to resolve the credit problems of the EU, persists and that’s good for commodities and commodity currencies. Copper also strengthens as the rapid economic growth of China leads to rising demand for industrial metals.
Peso has advanced 6.3 percent last week, posting the biggest gain among 25 major currencies of emerging markets.
USD/CLP traded today at 499.3500 as of 4:00 GMT after jumping to 504.0500.
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