Dec. 17 (Bloomberg) -- Peru’s sol fell from its highest level in 16 years as the central bank bought dollars to stem appreciation in the local currency.
The sol depreciated 0.1 percent to 2.5625 per U.S. dollar at today’s close, according to Deutsche Bank AG’s local unit. The currency strengthened to 2.56 on Dec. 14, its strongest close since 1996, data from Peru’s financial regulator show.
The central bank said on its website it bought $80 million in the spot market today, taking its purchases this year to $13.5 billion. Since September the monetary authority has bought dollars every day, even when the sol depreciates, to make it harder for traders to predict movements in the currency, bank president Julio Velarde told reporters Dec. 14.
“The central bank has become less predictable, intervening in the market even when there is little movement in the currency, because it wants to create volatility that is really lacking in the currency,” said Hedmond Rios, an economist at Celfin Capital in Santiago.
The yield on the nation’s benchmark 7.84 percent sol-denominated bond due August 2020 was little changed at 3.95 percent at 3:41 p.m. in Lima, according to prices compiled by Bloomberg.
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