Dollar in Peru: exchange rate continues to fall and closed at S/ 3.7270

The dollar continues its downward trend, closing at S/ 3.7270 at 1:30 p.m. on Thursday, February 17, which meant a drop of 0.61% compared to the previous day, in which it had a value of S/ 3.75, according to the report of the Central Reserve Bank of Peru (BCRP). It is the lowest value reached during the Castillo era, which last week stood at S/ 3.74.

Thus, the Peruvian sol was the second currency that appreciated the most in the region (0.58%). So far in 2022, the US currency has fallen by 6.61%, according to information from Bloomberg.

Meanwhile, the parallel exchange rate was between S/ 3.73 for purchase and S/ 3.77 for sale. While, in the main banks of the country, the refuge currency reached S/ 3.7100 and S/ 3.7670, the purchase and sale; respectively.

The issuing entity placed a 3-month BCRP CDV auction: S/ 600 million at an average margin of 0.04% and a 1-month BCRP CD for S/ 650.2 million at an average interest rate of 3.48%.

Gianina Villavicencio, Manager of Foreign Exchange Brokerage at Renta 4 SAB Peru, specified that during the day the supply flow came from the AFPs and corporations for the payment of taxes, while the demand came to a small extent from non-residents; 338 million dollars were traded on the market at an average price of 3.7453.

“Today there was an expiration of Regular Currency Repos for S/30 Million; however, during the day there was no intervention of the BCRP with financial instruments that mitigate the volatility of the currency”, detailed the executive.

Globally, the dollar rallied after it was reported that Russian troops have not withdrawn from the border with Ukraine, raising fears of a major conflict. In addition, yesterday the minutes of the FED’s latest monetary policy were published where, although it is agreed that it would be appropriate to raise interest rates, the schedule of increases would be re-evaluated in all meetings depending on the available economic data, reported Renta Four.