Chile peso dives, stocks end higher on cenbank move
(Adds quote, details, closing stock figures)
SANTIAGO, April 11 (Reuters) - Chilean stocks closed higher on Friday, resisting the negative pull of U.S. markets, after Chile's central bank announced measures to curb local currency strength, a move that caused a sharp decline in the peso against the dollar.
The all-market IGPA index .IGPA gained 0.31 percent to 13,690.96 points, while the blue-chip IPSA .IPSA advanced 0.29 percent to 2,947.46 points.
"Chile's bourse decoupled from U.S. and international markets today," said Agustin Alvarez, an analyst with the BICE brokerage, citing a strong rebound in commodities as well as recent central bank measures.
Wall Street stock indexes closed over 2 percent lower amid weak corporate earnings.
The central bank maintained its benchmark interest rate on Thursday and announced that it would intervene in the foreign exchange market for the first time since 2002 by purchasing $8 billion this year in competitive auctions to weaken the peso against the greenback.
Chile's peso has appreciated as much as 15 percent this year.
"Obviously the bank's announcement has generated a brusque short-term change in the exchange rate," Alvarez added. "And the market is now considering a possible rate cut toward the end of the year. That is giving local stocks a breather."
On the Santiago exchange, the blue-chip index closed the week with a five-day gain of over 7 percent, led by advances in raw materials. Continued...
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