Chile Peso Closes At 2-Month High As Copper Prices Extend Gains

The Chilean peso closed at a two-month high against the dollar Tuesday on the extended gains in international copper prices.The peso ended at CLP498.50 to the dollar, versus Monday's close of CLP498.95. During the session, the peso traded in a range of CLP495.75 to CLP498.80.
According to state copper commission Cochilco, spot copper in London rose 2.1% from Monday to $3.71265 a pound.
As the metal represents 60% of Chile's exports and 17% of its gross domestic product, the peso is very sensitive to copper price variations.
Additionally, the upbeat Chinese gross domestic product data contributed to the peso's gains.
China has become the world's largest copper consumer and if that nation's economy continues to grow at a robust pace, its appetite for the industrial metal will continue to underpin copper prices, according to a local currency trader.
In the fixed-income market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended flat in a thin session.
The yield on five-year BCU bonds ended at 2.14% on Tuesday, unchanged from the previous day, while the yield on 10-year BCUs closed at 2.34%, also unchanged from the previous session.