Peru's interbank exchange rate closed at S/3.3910 on Tuesday, up 2 centimos from the day's opening of S/3.389. Local corporate demand for dollars drove the move after the currency briefly broke through the S/3.3900 technical support level in early trading.
Jesus Agreda, a junior FX trader at Kambista, said optimism prevailed on Wall Street, with the S&P 500 gaining 1.0%, the Dow Jones 1.2% and the Nasdaq Composite 1.6%. He said progress in talks to guarantee free passage through the Strait of Hormuz kept pressure on oil prices and eased global inflation concerns.
Bond Yields and Central Bank Action
Agreda said lower volatility in commodities allowed U.S. Treasury yields to fall, reducing demand for the dollar as a safe-haven asset, while international markets showed greater appetite for riskier assets. He added that Peru's central bank, the Banco Central de Reserva, awarded S/1,000 million in one-week deposits at an average rate of 4.14%, ending the day with system liquidity of S/15,300 million, which helped manage financial system liquidity.
Trading Range and Economic Data
Jesus Flores Rios, commercial manager of currency intermediation at Renta4 SAB, said the dollar ranged between S/3.3870 and S/3.3930 during the session. Traders exchanged $273 million at an average price of S/3.3897, with no Swap Cambiario Venta maturities that day. Separately, the U.S. manufacturing PMI came in at 53.9 points in July, slightly above the forecast of 53.8 and matching the prior month's level, remaining in expansion territory. The DXY index traded at 99.86, down 0.13%.
