Peru’s sol surged the most since 2011 after the Andean nation ruled out a bid for the local assets of Repsol, allaying concern that the government plans to increase control of natural resources.
Petroleos del Peru SA, the state oil company commonly known as Petroperu, won’t bid for a refinery, gas distributor and service stations that Repsol may put up for sale, Energy and Mines Minister Jorge Merino told reporters yesterday. The decision will bolster investor confidence, the Lima Chamber of Commerce said in an e-mailed statement. Copper, the country’s top export, rose the most since October 2011 as U.S. hiring picked up more than expected.
The sol’s gain “reflects the mix of good political news along with a substantial rally in copper prices,” said David Spegel, the global head of emerging markets strategy at ING Financial Markets in New York.
The yield on Peru’s benchmark 7.84 percent sol bond due August 2020 fell three basis points, or 0.03 percentage point, to 3.87 percent, according to data compiled by Bloomberg. The price rose 0.18 centimo to 124.82 centimos per sol.
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