Peru Central Bank Seen Weighing Intervention on Sol Strength
- Morgan Stanley, Citigroup mention possible dollar purchases
- Currency trading at strongest level since last November
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Peru’s central bank has been contacting local traders to test the waters on a possible intervention in the market after the sol reached its strongest level since November, according to Morgan Stanley and Citigroup Inc.
The central bank is considering buying dollar swaps in a sign to the market that it wants to slow down the appreciation of the sol -- which means sun in Spanish -- and calm volatility, Citigroup said in a note to clients Tuesday. Morgan Stanley also mentioned talks of an intervention in a note to clients.