Peru Sol Rises on Eased European Debt Concern; Bond Yields Fall
Peru’s sol rose for the first time in three days as concern eased that Italy’s election deadlock will deepen Europe’s debt crisis, boosting demand for higher- yielding assets.
The sol advanced 0.1 percent to 2.5815 per dollar at the close of trading in Lima, according to data compiled by Bloomberg. The currency has declined 1.2 percent this year.
Italian 10-year bonds gained after the country sold debt in its first auction following inconclusive election results that pushed yields to a four-month high yesterday.
“Sentiment is playing in favor of currencies as European markets recover,” said Gonzalo Navarro, the head trader at the local unit of Banco Santander.
Peru’s central bank said on its website it didn’t buy dollars today.
The yield on Peru’s 7.84 percent sol-denominated bond due in August 2020 fell three basis points, or 0.03 percentage point, to 3.86 percent at 2:55 p.m. in New York, according to data compiled by Bloomberg. The price increased 0.17 centimo to 125.44 centimos per sol.
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