The dollar continues to rise against the Peruvian Sol, which has declined in value vs. the greenback over 9% this year.
Via El Comercio Peru (Google Translate with editors corrections for clarity – original below.)
Dollar doesn’t slow its advance : closes the day at S / 3.256
The exchange rate rose again in the week. The Central Bank intervened the market and sold $101 million in the day.
The exchange rate continued its upward trend today, standing at S / .3.256 soles, in a context in which the Central Reserve Bank (BCR) continued its direct intervention in the foreign exchange market and sold US $101 million.
The sale price of the dollar in the parallel market or exchange amounted to S / 3.26 in the afternoon, while the windows of major banks stood at S / 3.32 on average.
RISE CONTINUES
So far in 2015 the dollar has appreciated by 9.26%, given that the dollar closed today at S / 3.256, after finishing last year at S / 2.980.
According to the Central Bank, the dollar showed a minimum level of S / S and maximum 3.250 / 3.255 on the day today, along with an average price of S / 3.2538.
With commodity prices still weak (and expected to stay weak,) the Sol will likely continue to decline as dollars flee the country in anticipation of Federal Reserve rate hikes, and continued trade deficits. Moreover, the 50% of debt denominated in dollars will continue to drive dollar demand and weaken the Sol.
It’s a tourists dream, but tough on retailers as prices for foreign manufactured goods rise.
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