The price of the US dollar in Peru closed higher on Tuesday, as appetite for risky assets renewed after announcements from China about COVID that gave hope of improving the situation in the world’s second largest economy.
The exchange rate The day ended at S/ 3.852 per dollar, an advance of 0.27% compared to Monday’s close, when it stood at S/ 3.845, according to the Central Reserve Bank of Peru (BCRP).
So far this year, the greenback has accumulated a 4.03% decline compared to the last price of 2021, at S/ 3,991.
In the market, 331 million were traded at an average price of 3.8420. The BCRP intervened by placing Sales Exchange Swap for 200 million at 3 months at an average rate of 3.68%, indicated Fabiola Gutiérrez, Foreign Currency Trader at Renta4 SAB.
The dollar is projected to oscillate between 3.80 and 3.90 by the end of this year, as the Fed reaffirms that it must increase its interest rates to at least a range between 5.00% and 5.25% to reduce inflation. December 14 will be the last meeting of the year where the rate is expected to increase to the range of 4.25% to 4.50%.
At the international level, the market was encouraged by a more optimistic outlook after some restrictions in China were relaxed due to COVID-19, appeasing the discontent of the protesters.
On the other hand, at the market opening the US consumer confidence level indicator was known with a slight improvement to the expected level, a factor that influenced upward pressure on the dollar. The dxy was trading at market close at 106.
In the parallel market or the main exchange houses the dollar It is bought at S/ 3.83 and sold at S/ 3.86, according to data from the portal cuantoestaeldolar.pe.
Latin American currency and stock markets traded higher on Tuesday, as appetite for risky assets renewed after China’s announcements about COVID that gave hope of improving the situation in the world’s second-largest economy.
China said it will speed up vaccination against the COVID-19 virus among the elderly, aiming to overcome a key stumbling block in efforts to ease unpopular “zero-COVID” policy restrictions. The announcement boosted oil prices -an important generator of foreign currency for the region-, which rose 3%.
“There is relief in the market due to the potential reopening in China”said the brokerage Acciones y Valores. “While Beijing did not announce any concrete steps, it has pledged to bolster vaccination among its senior citizens, which is a move seen as crucial to ending the cycle of Covid Zero policy restrictions.”
Source: Elcomercio
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