That exchange rate closed on the day of this Friday, October 7th and stood at S/3.9590. In doing so, it fell 0.55% compared to the previous day’s close when it hit S/3.9810, as reported by Central Bank of Peru (BCRP).
On the parallel market, the US currency was trading at 1:50 p.m. at S/3.95 to buy and S/3.99 to sell. Meanwhile, on the banking market, it stood at S/3,878 when buying and S/4,058 when selling at the counters of the Banco de Credito del Peru.
According to Allison Pérez, Forex trader at Renta4 SAB, daytime demand came from non-residents while supply came from corporate and BCRP intervention by offering Exchange Swaps Sale for S/300 million at 6 months with an average rate of 4.01% and Exchange Swaps sold for S/30 million after 9 months at an average rate of 6.75%.
Today the sale of exchange rate swaps for S/999 million came to an end. The market traded $271 million at an average price of S/3.9776. Earlier in the day, the dollar peaked at S/ 3.9900 and hit S/ 3.9580.
Latin American currencies are being mixed with the USD Index (DXY), which is trading at 112.51. At the local level, the BCRP raised the benchmark interest rate by 25 basis points from 6.75% to 7% in a bid to stem inflation as it rose to 8.53% in September from 8.4% in August.
“Globally, the US unemployment rate came out better than expected as the forecast was 3.7% and the rate came in at 3.5%. This data encourages the Fed to continue raising interest rates and fighting inflation,” Pérez said.
The dollar is strengthening worldwide
In this line, Adrián Armas, Director of Economic Studies at the BCRP, claimed that strengthening the dollar it is a global phenomenon and in countries like Peru with historically low inflation compared to others, the pass-through effect of the exchange rate on national distribution chain prices is 0.2.
“The dollar has reached strong levels, but it is not our phenomenon, it is a global one. In relative terms, the sol is one of the few currencies to have depreciated over the year. A lot of times with the dollar going up we think it’s going to continue, but this exchange rate it can swing one way or the other,” he stressed.