Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Peru Sol Holds Near 3-Year High on U.S. Growth, Mining Demand

Don't Miss Out —
Follow us on:

Nov. 18 (Bloomberg) -- Peru’s sol held near a three-year high after an index of leading U.S. economic indicators rose more than forecast, spurring demand for higher-yielding assets, and as mining companies repatriated profits to pay local taxes.

The sol was little changed at 2.7005 per U.S. dollar at 11:07 a.m. in Lima, from 2.7008 yesterday. The currency earlier touched 2.6995, its strongest level since April 2008. It has gained 0.2 percent this week.

The Conference Board’s gauge of the outlook for the next three to six months showed gains in U.S. consumer spending, manufacturing and homebuilding, signaling the world’s largest economy will keep growing in early 2012. Peruvian exporters led by mining companies sold dollars to pay local income taxes. Purchases by the central bank this week are preventing a faster appreciation in the sol, said Ricardo Villamonte, head trader at Banco de Credito del Peru in Lima.

“Locals and foreigners are selling dollars, and the only source of demand is the central bank,” Villamonte said.

The central bank has bought $112 million in the spot market this week to temper gains in the sol.

The yield on the nation’s benchmark 7.84 percent sol-denominated bond due August 2020 was unchanged at 5.65 percent, according to prices compiled by Bloomberg. The yield is down two basis points, or 0.02 percentage point, this week.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.