Dollar closes at S/3.98 after S&P ratified Peru’s credit rating with a stable outlook

The dollar price American in Peru closed down this Wednesday, after Standard & Poor’s (S&P) ratified its credit rating for Peru and kept it on a stable outlook.

The exchange rate closed at S/3.989 per dollar, a decline of 0.25% compared to Tuesday’s close at S/4.00, according to the Central Reserve Bank of Peru (BCR). So far this year, the greenback accumulates a decline of 0.05% compared to the last price of 2021, at S / 3,991.

Today, US$281 million were traded on the market at an average price of S/3.9898, said Allisson Pérez, Foreign Exchange trader for Renta4 SAB.

“During the day, the demand came from local banks and the intervention offer from the BCR with financial instruments such as exchange swaps for sale for S/900 million at three months with an average rate of 3.67% and S/200 million at six months with average rate of 4.22%. Today there were maturities of exchange rate swaps for sale for S/786 million”he pointed.

In the parallel market or the main exchange houses, the dollar is bought at S / 3.97 and sold at S / 4.00, according to data from the portal cualestaeldolar.pe.

The international agency Standard & Poor’s (S&P) Global Ratings ratified Peru’s credit rating for its debt in foreign currency at BBB and in national currency at BBB+ with a stable outlook, which is supported by its low levels of public debt and its solid position net external.

The Ministry of Economy and Finance (MEF) stated that this situation reaffirms the strength of the Peruvian economy despite the high volatility of the local and international context.

At a global level, the euro is trading above the dollar due to expectations that the ECB will be more aggressive regarding the interest rate hike, raising the rate by 75 basis points. On the other hand, US investors continue to bet that the Federal Reserve will be less aggressive in raising interest rates after its next meeting on November 2.