“I think the main factor that would help the exchange rate is if the benchmark interest rate continues to rise,” said Asvim Asencios, a currency trader at Renta4 SAB Peru. Higher rates encourage investment and savings. Peru has hiked its interest rate for six consecutive months, lifting it to 3% last week in a cycle that is expected to continue as the central bank seeks to rein in inflation. “Monetary policy also looks to be moving rapidly towards levels of neutrality.” “A structural factor is that there is a lot of dollar inflow from exports,” said Hugo Perea, chief Peru economist for BBVA Research.
Peru currency rates series#
Now, despite the ongoing risk of potential political disruptions, its outlook has turned rosier on a recent series of interest rate hikes, a weaker dollar, strong commodities prices, and a better outlook for government tax incomes. READ ALSO: Peru’s Central Bank joins global push to develop a digital currency The sol hit a record low against the dollar last year and ended down over 10%, one of Latin America‘s worst performers. The currency has risen more than 2% against the dollar this month, hitting its strongest level since outsider leftist Pedro Castillo become president of the world’s no. Peru’s sol currency, which plunged last year due to political risk, is bouncing back so far in 2022 and likely to keep strengthening, analysts and traders said, as interest rates rise and copper prices soar.
One said it would weaken to 4.15 per dollar.
Peru has hiked its interest rate for six consecutive months, lifting it to 3% last week in a cycle that is expected to continue as the central bank seeks to rein in inflation.All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.įusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
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Peru currency rates professional#
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