Peru’s Sol Gains Most in Week on Tax Payments; Bond Yields Rise

Peru’s sol advanced the most in a week as companies exchanged dollars to pay taxes even as the central bank intervened to slow the local currency’s gains.

The sol gained 0.1 percent to 2.5930 per U.S. dollar at the close of trading, according to prices from Datatec. The central bank said on its website it bought $20 million of U.S. currency and paid an average 2.5951 soles per dollar, after purchasing a similar amount yesterday at 2.5974.

Peruvian companies have until March 21 to make monthly tax payments and until April 2 to meet their obligations for the 2012 tax year. The euro fell and U.S. Treasuries gained as Cyprus’s parliament voted down an unprecedented bank-deposit levy, fueling speculation the nation’s bailout will falter.

“There’s a seasonal increase in dollar sales, though on this occasion the appreciation has probably been limited by the external turbulence,” said Hugo Perea, the chief economist at BBVA Banco Continental in Lima.

The yield on Peru’s benchmark 7.84 percent sol bond due August 2020 climbed two basis points, or 0.02 percentage point, to 3.80 percent at 2:39 p.m. in Lima, according to data compiled by Bloomberg. The price fell 0.12 centimo to 125.72 centimos per sol.

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