US dollar closes flat in Peru at 3.436 soles

The US dollar closed flat on Monday, October 5, at 3.436 soles, unchanged from the previous session. Dollar demand during the day reversed an initial appreciation of the Peruvian currency, as the US Dollar Index (DXY) advanced 0.31% to trade at 102.15, up 0.22%.

During the session, the exchange rate moved between a low of 3.4150 soles and a high of 3.4370 soles, according to Jesús Flores Ríos, commercial manager of foreign exchange intermediation at Renta4 SAB. Flores Ríos reported that market volume reached 277 million dollars at an average price of 3.4258 soles, with no maturities in foreign exchange sales swaps.

The 10-year US Treasury yield ended at 5.345% and the 30-year yield reached 5.697%, hovering near multi-decade highs. Jorge Luis Huayta, FX trader at Kambista, noted that the dollar gained ground internationally backed by high Treasury yields, while the market priced in less than a 20% chance of a Federal Reserve interest rate hike in October alongside elevated expectations for December.

The dollar pressured G10 peers, pushing both the euro and the Swiss franc down by close to 0.3%. In commodities, WTI crude oil fell 1.22%, while copper rose 0.88% and silver gained 1.01%. In the US, nonfarm payrolls rose by 29 thousand, missing expectations of 89 thousand and down from 133 thousand previously, while the unemployment rate rose to 4.2% from 4.1%.

Locally, markets await the monetary policy meeting of the Central Reserve Bank of Peru scheduled for Thursday, October 8. Huayta also pointed to monitoring of regional election results from Sunday, potential runoff votes on November 29, and forecasts pointing to an extraordinary El Niño weather event through January 2027 that could persist into autumn 2027.