Bloomberg reported that Chile’s peso gained as copper, the country’s chief export reached a seven week high on speculation central banks may add more stimulus to the global economy.

The European Central Bank will cut its main interest rate to an all time low this week. The reserve requirement for banks should fall. Copper reached the highest since May 15th 2012 on the Comex in New York as commodities gained.

Mr Andres de la Cerda money markets trader at Bice Inversiones in Santiago said that copper are pretty strong and the market has reacted positively to the US factories data too.

The Commerce Department said that orders placed at US factories rose in May for the first time in three months. Copper makes up half of Chile’s exports. The price of the metal drives the volume of dollars entering the country and the value of the peso.

Source - Bloomberg.net

(www.steelguru.com)