Peru’s Central Bank Buys Dollars as Sol Trades Near 15-Year High
Peru’s central bank purchased the most dollars in three weeks as the sol traded near a 15-year high after exporters bought the local currency to pay taxes.
The central bank bought $139 million to stem gains in the sol, the most since July 19. The bank said on its website that it paid an average 2.6160 soles per U.S. dollar.
“They may be anticipating inflows coming in because of the tax season so they they’ve decided to neutralize that flow,” said Kenneth Lam, a strategist at Citigroup Inc. in New York.
The sol was little changed at 2.6165 per U.S. dollar at today’s close after earlier strengthening to 2.6150, according to Deutsche Bank AG’s local unit. The currency last touched 2.6150, which is the strongest level since 1997, on Aug. 9.
The currency has gained 4.8 percent over the past 12 months, the best performance among 25 major emerging-market currencies tracked by Bloomberg.
The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 declined two basis points, or 0.02 percentage point, to 4.58 percent, according to prices compiled by Bloomberg. The price rose 0.16 centimo to 121.53 centimos per sol.
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