Peru Sol Rallies Most Since 2011 as Petroperu Backs Off Repsol

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.

The sol jumped 0.8 percent to 2.6250 per U.S. dollar at 10:11 a.m. in Lima, the most on a closing basis since June 2, 2011, according to prices from Datatec.

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.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.