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Peru’s Sol Rises to Three-Year High After U.S. Data Spurs Demand

Peru’s sol rose to its strongest in more than three years after U.S. economic data boosted the outlook for the global economy, spurring demand for higher- yielding, emerging-market assets.

The sol was little changed at 2.6880 per U.S. dollar at 11:08 a.m. Lima time, from 2.6890 on Feb. 3, according to Deutsche Bank AG’s local unit. The currency earlier touched 2.6870, the strongest since at least December 2008.

Investor appetite for riskier assets grew last week after the U.S. jobless rate slid to the lowest level in three years.

“The jobless rate was much better than expected and gave the market a boost,” said Antonio Diaz, a trader at Banco Internacional del Peru in Lima. “There have been sales in the forwards market from offshore investors of late, which has increased local banks’ dollar holdings.”

Peru’s central bank bought $409 million in the spot market last week to stem gains in the sol.

The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 climbed two basis points, or 0.02 percentage point, to 5.64 percent, according to prices compiled by Bloomberg. The bond’s price fell 0.12 centimo to 114.68 centimos per sol.

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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