Peruvian sol strengthens as dollar closes at 3.3720

The US dollar closed at 3.3720 Peruvian soles on 15 September, according to data from the Central Reserve Bank of Peru (BCR). The session showed a downward trend for the currency pair, driven by an increased supply of foreign currency from exporters.

During the session, the exchange rate opened at 3.3750 soles and reached an intraday high of 3.3770 soles before settling at 3.3720 soles. Gianina Villavicencio, currency intermediation manager at Renta4 SAB, noted that the currency traded between a low of 3.3720 soles and a high of 3.3780 soles. The market transacted 280.5 million US dollars at an average price of 3.3756 soles, while foreign exchange purchase swaps worth 400 million soles matured. The BCR did not conduct direct spot sales.

In the local market, dollar sales by corporate and mining companies during the afternoon absorbed demand from importers. Internationally, copper traded above 6.60 US dollars per pound, offering support to regional mining economies. Global markets also tracked Brent crude at up to 109 US dollars per barrel, the 10-year US Treasury yield above 5%, and the US Dollar Index (DXY) at 99.38, up 0.28%.

Investors now await the policy decision from the US Federal Reserve on Wednesday 16 September. Locally, attention turns to the BCR Board meeting on Thursday 17 September, where consensus expectations see the benchmark interest rate holding at 4.25%, according to Jorge Luis Huayta, FX trader at Kambista.