Peru Sells $230 Million to Defend Sol Amid Police-Conduct Probe

Peru’s central bank sold the most dollars in three months to support the sol as a probe into police conduct undermined confidence in the government.

Banco Central de Reserva del Peru sold $230 million of U.S. currency in the foreign exchange market today, the most since a record intervention on Aug. 21, according to its website. The sol slipped less than 0.1 percent to 2.802 per dollar.

President Ollanta Humala called off a trip to Canada after his national security adviser, interior minister and six police officials resigned amid a probe into unauthorized protection for a Lima residence that opposition lawmakers have said may have been used for phone tapping. The investigation adds to investor concern about government policies as Humala seeks to increase fiscal outlays amid slowing growth, said Pedro Tuesta, an economist at Washington-based 4Cast Inc.

“There are so many political problems,” Tuesta said in a telephone interview. The policing probe “doesn’t help at all.”

Marcelo Puelles, a presidential spokesman, didn’t immediately return a call seeking comment

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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