Chilean Peso Retreats Most in Two Weeks as Copper, Euro Decline

Dec. 15 （Bloomberg） -- Chile’s peso fell the most in two weeks as lower copper prices signaled diminished export revenue for the world’s biggest producer of the metal.

The peso slid 0.2 percent to 473.85 per U.S. dollar from 472.95 yesterday, the steepest drop since Nov. 29.

Copper, Chile’s biggest export, fell for a second day in London, while European stocks snapped a seven-day rally and the euro slumped against the dollar as a potential downgrade of Spain’s credit rating revived concern that debts will hamper Europe’s economic rebound. The U.S. Federal Reserve yesterday maintained a $600 billion program of debt purchasing.

“We’re seeing a natural response to commodity prices and the dollar’s value internationally,” said Jorge Selaive, chief economist at Banco de Credito e Inversiones in Santiago.

Spain’s credit rating may be cut from Aa1, Moody’s Investors Service said, amid concern it may follow Greece and Ireland in seeking a bailout.

Copper for delivery in three months dropped 0.7 percent to $9,099 a metric ton on the London Metal Exchange. The MSCI Europe Index retreated 0.3 percent. The euro declined 0.7 percent after yesterday’s 0.1 percent slide.

Chile is the world’s biggest copper-producing nation. Mining exports were 64 percent of Chile’s total exports last quarter, according to central bank data.

--Editor: James Attwood, Brendan Walsh