US dollar opens lower at 3.422 soles in Peru
The Peruvian sol appreciated 0.41% ahead of the Federal Reserve minutes and the local central bank decision.
The US dollar opened at 3.422 Peruvian soles on Tuesday, October 6, down from 3.436 soles at the prior close. The opening move represented an initial appreciation of 0.41% for the Peruvian currency. Early local demand later pushed the exchange rate to 3.430 soles.
The drop coincided with a 0.22% decline in the US Dollar Index (DXY) ahead of the release of the Federal Reserve minutes on Wednesday. In US fixed income, the 10-year Treasury yield stood at 5.298%, while the 30-year yield reached 5.668%. In commodities, WTI crude fell 1.85% to 87.78 dollars per barrel, marking a third consecutive week of declines, while gold rose 0.33% and copper gained 0.69%.
Across foreign exchange markets, the euro climbed 0.27%, the British pound added 0.36%, the Brazilian real rose 0.45%, and the Mexican peso advanced 0.60%. Domestically, investors are waiting for the Central Reserve Bank of Peru to announce its monetary policy decision on Thursday, with markets anticipating the reference interest rate will stay at 4.25%. Market participants are also monitoring Coastal El Niño forecasts for higher-than-normal rainfall between October and December.
The sol begins the session supported by a weaker global dollar, lower oil prices and the recovery of commodities. However, the advance of USD/PEN from 3.422 toward 3.430 shows that dollar demand remains present. The Fed minutes and the BCRP decision will be the main catalysts of the week.
Share prices can rise and fall. Past performance does not guarantee future results. This article is news, not investment advice.
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