Chile peso off more post intervention, stocks rise
SANTIAGO, April 15 (Reuters) - Chile's peso fell for a third straight session on Tuesday, following last week's central bank intervention, while stocks rose after comments by the bank raised hopes for future interest rate cuts.
The peso CHILJ CLP=CL depreciated 1.45 percent, to end the session at 456.30/456.60 per dollar, compared with Monday's close at 449.70/450.00.
Tuesday's decline pared the peso's appreciation against the dollar to less than 9 percent for the year. The peso has depreciated 4.93 percent since the intervention was announced on Thursday evening.
The bank's first official foreign exchange intervention since 2002 was announced last week to curb the strength of the peso, which had gained as much as 15 percent this year against a weaker greenback.
The weaker dollar and the milder interest rate outlook also helped boost stocks, with the all-market IGPA index .IGPA gaining 1.34 percent to 13,956 points, while the blue-chip IPSA .IPSA advanced 1.69 percent to 3,016.
"One important factor is the dollar exchange rate, which has helped the export sector, including forestry," said Marcelo Ogaz an analyst with the BICE brokerage.
"On top of that (Central Bank President Jose) De Gregorio said there is a possibility for interest rate cuts in the future, and that would be positive for the bourse."
On Monday the central bank president said he saw equal chances for rate increases or cuts. The comment helped offset concerns about higher rates to control annual inflation, which has surged to 8.5 percent, its highest level in over a decade.
On the Santiago exchange, 35 of 40 blue-chip stocks traded in positive territory in Tuesday afternoon trade, pulled higher by retailers, electric utilities and forestry companies.
Gains were led by retailers with department store chain Ripley RIP.SN jumping 3.85 percent and regional giant Falabella FAL.SN up 3.57 percent.
Endesa Spain regional energy group Enersis ENE.SN rose 2.07 percent, while generating subsidiary Endesa Chile END.SN also advanced 2.07 percent. The two stocks comprise about 15 percent of the blue-chip index.
The forestry sector was led by wood pulp heavyweights Copec COP.SN and CMPC CAR.SN, which rose 1.65 percent and 1.15 percent respectively.
Leading shipper Vapores VAP.SN surged 3.47 percent. (Reporting by Manuel Farias; Writing by Lisa Yulkowski, Editing by Simon Gardner and James Dalgleish)
