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The peso fell by 4.6 per cent, the most since June 1989, after central bank president President Jose De Gregorio (pictured) announced a plan yesterday to buy $50 million a day, about $12 billion, from Jan. 5 until Feb. 9. in the foreign-exchange market tomorrow to weaken the currency.
Until today, the peso had gained 17 percent against the U.S. dollar since July, second only to the Australian dollar, as copper prices surged.
Economist Pedro Tuesta told Reuters: "If the pretty conservative Chilean central bank intervenes what can you expect of the Brazilian central bank!"
MEANWHILE, copper futures fell the most in three weeks because manufacturers may have enough metal to meet demand.
Copper futures rose 33 percent in 2010 as world economies recovered.
FOR DETAILS, SEE:
http://www.bloomberg.com/news/2011-01-04/copper-rises-to-record-for-fourth-day-in-london-on-u-s-growth-speculation.html
