The peso gained 0.5% as copper futures on the London Metal Exchange surged as much as 2.1%. The red metal represents Chile's largest export commodity.

Several major mining operations have successively revised down their production forecasts, with the latest development being Teck Resources lowering output expectations for its flagship Chilean asset, fueling trader optimism.

The Chilean currency posted the strongest performance among emerging market currencies on Thursday.

The peso has accumulated gains of 5.2% year-to-date, positioning it for potentially the best annual performance since 2020.