Buoyant copper prices lifts Chile's peso

Chile's peso scaled a near one-month peak on Monday as copper prices soared, while rising oil prices saw crude exporter Colombia's peso extend gains to a fourth straight session.

Copper prices jumped to their highest since 2012 as investors continued their buying spree on concerns over rising inflation and stronger than expected demand in top metals consumer China.

The world's top producer of the red metal saw its currency rise 0.6% against a weaker dollar, after logging its best week since December.

Colombia's peso rose 0.2%. Oil prices hit 13-month highs as vaccine roll outs spurred hopes of strong demand in a post-coronavirus world.

Colombia's first COVID-19 vaccines - 50,000 from Pfizer - will arrive in the Andean country on Monday afternoon, President Ivan Duque said. The government plans to administer its first dose on Saturday.

Hopes of more stimulus in the United States also strengthened the case for a global economic recovery and keeping appetite for risk alive. US President Joe Biden is pressing Congress to pass a $1.9 trillion aid package.

Mexico's peso slipped 0.2%.

"In short term models, the currency has now moved back to fair value from being cheap, reducing the risk reward for large MXN "over-weight" positions, said strategists at JP Morgan.

While they think the Mexican peso may benefit from a constructive environment for EM FX for a little while, they point to reviews by rating agencies due in the second quarter, potentially reminding investors about issues around indebted state oil firm Pemex, business confidence and oil investment.

COVID-19 cases continued to rise in the country with the total number of cases rising to nearly 2 million as of Sunday, while deaths were at 174,207. But the health ministry said real number of cases and deaths is likely significantly higher than the official count.

With markets in Brazil, Argentina as well as the United States closed for local holidays, volumes were thin.