Chile peso gains as dollar slips, stocks trade flat
SANTIAGO, Dec 4 (Reuters) - Chile's peso closed higher on Thursday as the dollar eased in foreign markets, while stocks traded near flat in sluggish afternoon trade.
The peso CHILJCLP=CL appreciated 0.75 percent to close at 669.00/669.50 per dollar compared with Wednesday's close at 674.00/674.50.
"What's driving the peso is the decline in the dollar, especially against the euro," said one trader.
The dollar fell against the euro after the European Central Bank cut its benchmark rate 75 basis points to 2.5 percent on Thursday, which raised optimism about the continent's economy.
The blue-chip IPSA index .IPSA traded 0.02 percent lower in afternoon trade at 2,303 points, while the all-market IGPA .IGPA slipped 0.01 percent to 11,109 points.
"There isn't really a clear trend, given the inflation figure on top of negative global bourses," said Marcelo Ogaz, an analyst with the BICE brokerage.
Chile's consumer prices fell 0.1 percent in November, less than the 0.25 percent drop forecast in a Reuters poll. The rate of 12-month inflation fell to 8.9 percent from 9.9 percent the prior month.
Advances in otherwise lethargic trade were led by giant wood pulp producer Copec COP.SN, up 0.87 percent, while percentage gains were led by leading brewer CCU CCU.SN, as its shares jumped 4.17 percent.
Losses were led by diversified regional retailer Cencosud CEN.SN, with a decline of 1.78 percent.
Regional electric generator Endesa Chile END.SN (EOC.N) contributed with a loss of 0.88 percent in afternoon trade. (Reporting by Manuel Farias and Froilan Romero, Writing by Lisa Yulkowski; Editing by Tom Hals)
