Peru’s sol rose for a third consecutive session as local companies bought the currency to pay taxes and the central bank refrained from buying dollars.
The sol advanced 0.1 percent to 2.5955 per U.S. dollar at today’s close, according to data compiled by Bloomberg. It has dropped 1.7 percent this year after strengthening 5.7 percent in 2012.
Companies have until March 21 to make monthly income tax payments, according to the website of Peru’s tax collection agency Sunat. The increased dollar sales allowed the overnight dollar rate to fall to about 3 percent, from 6.3 percent a week earlier, said Gonzalo Navarro, the head trader at the local unit of Banco Santander SA.
The central bank said on its website it didn’t buy or sell dollars in the foreign exchange market today.
The yield on Peru’s benchmark 7.84 percent sol bond due August 2020 climbed one basis point, or 0.01 percentage point, to 3.81 percent at 3:32 p.m. in Lima, according to data compiled by Bloomberg. The price declined 0.07 centimo to 125.70 centimos per sol.