Exchange rate: The dollar closes the last day of the week lower

The price of the dollar in Peru closed lower on Friday, after the Central Reserve Bank of Peru (BCR) increased its reference interest rate to 4.0%.

The exchange rate the session ended at S/ 3,705 per dollara fall of 0.21% compared to the close of Thursday, at S / 3,713, according to data from the BCR.

So far this year, the greenback accumulates a decline of 7.17% compared to the last price of 2021, at S / 3,991.

“During the day the flow of supply and demand came from AFPs and corporations. US$ 290 million were traded in the market at an average price of S/ 3.6910. Today the BCR intervened with S/ 200 million in currency repos at an average rate of 4.37% overnight”, indicated Gianina Villavicencio, manager of Foreign Exchange Brokerage at Renta 4 SAB Peru.

Yesterday the BCR raised its reference interest rate from 3.5% to 4.0%. The decision was made considering that inflation stood at 6.15% in February, above the target range (1%-3%), due to the rise in international fuel and food prices, accentuated recently by the conflict between Russia and Ukraine.

On the other hand, in the parallel market or the main exchange houses, the dollar it was bought at S/ 3,680 and sold at S/ 3,720, according to the portal quantumestaeldolar.pe.

Regionally, Latin American currencies were mixed while stocks were trading higher on Friday, amid less aversion to risky assets, on expectations of possible progress in talks between Russia and Ukraine to put end to the war conflict.

According to Reuters, Russian President Vladimir Putin said on Friday there had been some progress in Moscow’s talks with Ukraine, while the Kremlin said the conflict would end when the West took steps to address Moscow’s concerns.

In a meeting in the Kremlin with Belarusian President Alexander Lukashenko, Putin said that Western sanctions will not hamper Russia’s development and that Russia will end up stronger.