Peruvian sol weakens to 3.375 per US dollar

The Peruvian sol opened weaker on Wednesday, September 23, trading at 3.375 soles per US dollar. That compares with the previous close of 3.365 soles. The move followed a 0.37% gain in the US Dollar Index (DXY) amid rising market expectations of a potential Federal Reserve interest-rate hike in October.

Jorge Luis Huayta, FX trader at Kambista, stated that the US dollar has been gaining ground on expectations that the Federal Reserve will maintain a restrictive stance and keep interest rates higher for longer.

The stronger dollar pressured commodities and Latin American currencies. Gold fell 1.29%, silver lost 3.10%, and copper dropped 1.08%. In foreign exchange, the Chilean peso fell 1.7% and the Colombian peso dropped 1.6%. Meanwhile, crude prices rose amid renewed tensions between the United States and Iran around the Strait of Hormuz. Brent crude climbed 1.69% to 100.96 US dollars per barrel, and US crude rose 1.21% to 90.93 US dollars.

Trading volume in the Peruvian foreign-exchange market reached 216 million US dollars during the morning. Commercial banks held initial liquidity of 11,700 million soles, alongside Central Reserve Bank of Peru (BCRP) deposit maturities of 8,900 million soles.