Peru’s sol advanced the most in two weeks as optimism that growth in the U.S. and China will offset stagnation in Europe spurred demand for higher-yielding, emerging-market assets.
The sol strengthened 0.1 percent to 2.6940 per U.S. dollar at 11:25 a.m. Lima time, from 2.6980 yesterday, according to Deutsche Bank AG’s local unit.
The Institute for Supply Management’s factory index topped estimates and U.S. government data showed construction spending grew at more than twice the forecast rate. Reports in the past two days showed a pickup in Chinese and Indian manufacturing. Copper, Peru’s top export, climbed in New York.
“The world is looking at 2012 with a bit more optimism,” said Gonzalo Navarro, the head trader at Banco Santander in Lima. “It seems like investors see more room for asset prices to increase than decline.”
The yield on Peru’s benchmark 7.84 percent sol-denominated bond due August 2020 fell two basis points, or 0.02 percentage point, to 5.73 percent, according to prices compiled by Bloomberg. The bond’s price rose 0.13 centimo to 114.17 centimos per sol.
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