Exchange rate in Peru: How the dollar fared during the last week

• Inflation in the US reached 8.2% year-on-year in September and a new interest rate hike is expected

During the week, the exchange rate in Peru was impacted by the exposed data on the US economy such as inflation. Meanwhile, at the local level, . Next, review the events –local and international– that marked the advances and setbacks of the US currency.

On Monday, the dollar started the week with a price of S/3,949 in a scenario where investors had their sights set on inflation data. In fact, comments from different leaders of the United States Federal Reserve (Fed) during the past week pointed to the need to continue tightening monetary policy.

At the close of that day, the exchange rate closed higher at S / 3.96 with investors who continued to pay attention to the inflation data from the United States.

The next day, Tuesday, the dollar traded at S/3,964 while it was known, by the IMF, that global GDP growth would slow to 2.7% next year.

Meanwhile, at the local level, the president of the Council of Ministers, Aníbal Torres, had reported that the International Arbitration Court had resolved the contract with the concessionaire Novonor (ex-Odebrecht) for the completion of works on the third stage of the Chavimochic III irrigation project. .

The end of the session marked a price of S / 3.97 for the dollar.

On Wednesday, the dollar price It was trading at S/3,975, unchanged from Tuesday’s close. However, at the close, the exchange rate ended at S/3.981 per dollar despite the intervention of the BCR.

The following day, Thursday, the exchange rate was trading at S/3.990 per dollar, an increase of 0.23% compared to Wednesday’s close.

Globally, US consumer prices had risen more than expected in September and underlying pressures continued to build.

This consequently reinforced expectations that the Fed will carry out a fourth interest rate hike of 75 basis points next month.

With this in the background, the dollar ended that day with a price of S / 3,980.

At the end of the week, on Friday, the dollar began the session with a price of S/3.981 per dollar and closed higher at S/3.99 due to the global advance of the greenback. This result was impacted by consumer prices in the United States, which rose more than expected.

At a global level, according to analysts, the European Central Bank must continue to raise interest rates to control inflation, despite the growing risks of recession. The pound sterling started the day lower as the finance minister was sacked and parts of the previously planned economic package were scrapped.

The fluctuations of the dollar from October 10 to 14:

Asvim Asencios, Forex trader at Renta4 SAB, commented that during the week the price of the dollar had an appreciation of 0.78% compared to last Friday’s close.

“The pressure of demand came from non-residents who increasingly take refuge in the US dollar, due to the positive data from the US economy, since on Thursday the inflation data for the month of September were published, which were better than expected. expected by analysts what drives the demand for foreign currency”commented.

In his perspective, the dollar is expected to continue to strengthen against other currencies next week due to the results of the Chinese economy. This includes, as reported, data on the trade balance, GDP and inflation. Likewise, data on the level of inflation in the eurozone will be known.