Dollar closes lower in line with commodity weakness

The dollar price American in Peru closed this Tuesday lower, influenced by the fall in the prices of raw materials such as oil and copper, while the agents focused their attention on comments from Federal Reserve officials.

The exchange rate ended at S/3.977 per dollar, a decline of 0.05% compared to Monday’s close of S/3.979, according to the Central Reserve Bank of Peru (BCR).

So far this year, the greenback accumulates a decline of 0.35% compared to the last price of 2021 at S / 3,991.

Today, US$350 million were traded in the market at an average price of S/3.9771, said Alexander Javier Bernaola, Foreign Exchange trader for Renta4 SAB.

“Today’s session began with the opening of the market at S/3.9730, we had demand for offshore and corporate. The BCR placed exchange swap sale for S / 200 million to three months″he pointed.

In the parallel market or the main exchange houses, the dollar is bought at S / 3.96 and sold at S / 3.99, according to data from the portal cualestaeldolar.pe.

Globally, copper weakened on concerns about China and the global slowdown. The red metal has lost 30% since hitting an all-time high in March, but has been range bound between $7,200 and $8,000 since late August. China’s consumer price index posted the biggest increase in more than two years. The gauge rose 2.8% last month from a year ago, matching expectations in a Reuters poll.

“It seems that today (Tuesday) the correlation with the international markets is breaking down, punished by a slightly negative evolution that some raw materials such as oil and copper have registered today”said Andrés Cuartas, manager of international fixed income at Renta4Global.