Chile’s peso appreciated for fourth day versus the US dollar as higher prices for copper the country’s main export improved trade prospects.

Mr Sergio Tricio head of research at ForexChile said that the peso advanced in line with copper. The weakening of the dollar in recent days versus other major currencies is also helping the peso.”

The price of copper rose as much as 4.9% in New York to USD 3.588 a pound on speculation that China may lower interest rates. It has recovered 14% since October 20th 2011 when it reached its lowest price since July 2010.

Mr Tricio said that “If copper holds above the USD 3.50 per pound resistance level, the peso may strengthen all the way to 490 per dollar.”

(Sourced from Bloomberg.net)