| Bearish wagers on Chile’s peso climbed to a six-month high as the currency traded near the lowest level since 2003. Bets against the peso in the non-deliverable forwards market climbed to $9.2 billion on Friday, the most since March, according to data published by the central bank Tuesday.
The currency has tumbled 15 percent this year amid a plunge in copper, which makes up 49 percent of all Chile’s exports, and speculation that higher U.S. interest rates will dim the appeal of emerging-market currencies. “That’s a faithful reflection of fundamentals,” said Felipe Alarcon, the chief economist at EuroAmerica in Santiago. “This scenario is likely to continue until the Fed decision in December.”..............................................Full Article: Source
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