Peru’s Central Bank Buys $211 Million as Europe Spurs Sol Gains
Peru’s central bank made its second- biggest dollar purchase this year to slow gains in the sol as optimism Europe may stem its debt crisis spurred demand for emerging-market assets.
The sol rose 0.3 percent to 2.6945 per U.S. dollar at today’s close, from 2.7015 yesterday, according to Deutsche Bank AG’s local unit.
Global stocks and commodities rallied earlier today after German investor confidence unexpectedly increased and Spain sold more debt than planned at an auction. The sol fell 0.2 percent yesterday after President Ollanta Humala swore in 10 new cabinet ministers on Dec. 11 in the wake of mining protests.
“Positive news abroad today is pushing the cabinet changes into the background,” said Gonzalo Navarro, the head trader at Banco Santander in Lima.
The sol will likely continue its advance this month as companies seek the local currency to make year-end bonus and tax payments, Navarro said.
The yield on Peru’s benchmark 7.84 percent sol-denominated bond due August 2020 was little changed at 5.75 percent, according to prices compiled by Bloomberg. The bond’s price eased 0.02 centimo to 114.08 centimos per sol.
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.