Peruvian Sol Appreciates as Exporters Sell Dollars to Pay Taxes

Peru’s sol rose to its strongest against the dollar in two weeks as exporters sold the U.S. currency to pay local income taxes.

The sol appreciated 0.2 percent to 2.5675 per U.S. dollar at today’s close, according to prices compiled by Bloomberg. That’s the strongest close since Jan. 30.

The central bank intervened to stem the gains, buying $280 million today in the currency market, the most in a week, according to its website. The price was an average 2.5669 soles per dollar, according to the website.

“Historically February has always been a month where sales are very high and this year’s no different,” said Antonio Diaz, a trader at Banco Internacional del Peru SAA in Lima. “At the moment the exchange rate basically depends on how much and at what price the central bank decides to buy.”

The yield on the nation’s benchmark 7.84 percent sol-denominated bond due August 2020 was unchanged at 3.78 percent, according to prices compiled by Bloomberg. The price was 126.14 centimos per sol.

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