- These are the external components that influence the price of the dollar today
During the week, the exchange rate in Peru was impacted by international and local factors. Among them, the expectations for the next decisions of the Federal Reserve (Fed) and the panorama of political uncertainty at the national level, after the presentation of the third vacancy motion against the president, Pedro Castillo. Review below the events that marked the advances and setbacks of the US currency.
On Monday, the dollar started the week with a price of S/3.857 per dollar, an advance of 0.15% compared to Friday’s close, according to information from the Bloomberg agency.
Most currencies and stock exchanges Latin America closed with losses last Friday, in a day of a slight global advance of the dollar, but with low business volume due to a partial holiday in the United States. At the end of that session, the greenback closed at S/3,845 in the face of uncertainty caused by protests in China due to COVID confinements.
On Tuesday, the dollar price It was S/3,837 as stocks and oil rose on hopes that unrest in China could spark an easing of COVID-19 restrictions in the world’s second-largest economy, with the yuan rising and the dollar lower. lower as appetite for riskier assets increases. At the end of that day, the dollar closed at S/3,852.
The next day, Wednesday, the exchange rate The day began at S/3.854 per dollar, in a day where attention was focused on the president of the Federal Reserve, Jerome Powell, who would have his last opportunity to direct the sentiment before the meeting of the institution in December. The end of that session marked a price of S/3,857 for the US bill.
On Thursday the exchange rate It was trading at S/3.844 to the dollar as global investors bet on a slower rise in interest rates in the United States and a loosening of controls in China due to COVID-19.
Meanwhile, in Peru, the High Level Commission of the Organization of American States (OAS), which visited the country, would present its preliminary report on the political crisis situation that Peru is going through. He would do so before the Permanent Council of that international organization. Hours later, the dollar closed lower with S/3,820 after inflation data in the country.
This data, measured by the variation in the price index, in Metropolitan Lima added 8.45% in the last 12 months, higher than at the end of October, which reached 8.28%, according to the National Institute of Statistics and Informatics (INEI). ).
The following day, Friday, the US bill traded at S/3,832 while investors remain attentive to the decision that Congress would take next week on the vacancy motion against President Pedro Castillo.
In Peru, the plenary session of Congress approved the previous day – with 73 votes in favor, 32 against and six abstentions – the admission to process of the presidential vacancy against President Pedro Castillo. The debate and the final vote will be next Wednesday, December 7.
The vacancy motion is the third facing Castillo during his term as President of the Republic. It has more than 100 pages that seek to support the reasons that the president has incurred “permanent moral incapacity.”
For its part, the OAS high-level group presented its preliminary report on the political situation in Peru before the Permanent Council of said supranational body and concluded that Peru’s “democratic institutions” “is at risk” due to the political environment. highly polarized.
At the end of the session, the exchange rate closed the week at S/3,840 amid better-than-expected labor data in the United States and a moderate rise in international oil prices.
Globally, Reuters reported that US employers hired more workers than expected in November and raised wages, despite growing concerns of a recession, which could complicate the Federal Reserve’s intention to start slowing the pace of your interest rate increases this month.
Dollar fluctuations from November 28 to December 2:
|Monday, November 28||S/3,857||S/3,845|
|Tuesday November 29||S/3,837||S/3,852|
|Wednesday, November 30||S/3,854||S/3,857|
|Thursday December 1||S/3,844||S/3,820|
|Friday December 2||S/3,832||S/3,840|
Fabiola Gutiérrez, currency trader at Renta4 SAB, pointed out that, during the week, the price of the dollar had a reduction of 0.51%. In this line, she said that the downward pressure came to a greater extent from the offer of residents.
“Jerome Powell’s statements on Thursday confirmed market expectations by indicating that the pace of interest rate rises could slow down. The last meeting of the US Federal Reserve is scheduled for the 13th and 14th of this month, in which it will be determined if there will be another increase after four consecutive increases”recalled the specialist.
For the next week, Gutiérrez indicated that the dollar is projected to recover the trend. “On Monday, the non-manufacturing PMI index will be known, with a value lower than the previous period being expected, and on Friday, the producer price index (PPI), which is estimated to remain at 0.2%”he remarked.
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