The dollar in Peru closed the first week of 2024 trading at S/3,720

He dollar In Peru it closed the first week of 2024 trading at S/3,720. Although this represents a drop of 0.21% compared to Thursday’s day, it is an increase of 0.35% compared to its last value in 2023 (S/3,707).

According to Allisson Pérez, currency trader at Renta 4 SAB, the main factor that drove its price is the strengthening of the United States economy.

“The dollar was strengthened by the yield on US treasury bonds. This makes the markets bet on them, withdrawing their money from emerging countries, and this, in turn, increases the value of bonds and the dollar.”he explained.

Notably, 10-year Treasury bond yields hit a three-week high during trading yesterday.

On the other hand, yesterday it was confirmed that the unemployment rate in the North American country remained at 3.7% in December, the same level as that obtained in the previous month, according to information from the Bureau of Labor Statistics. Meanwhile, the creation of new jobs was 216 thousand, 43 thousand more than the market expectation the day before.

For Luis Falen, head of macroeconomics at Intéligo, the results of the report showed that the US economy has strengthened in recent days and that it still has inflationary pressures.

“This is beginning to make the market think that rate hikes could be delayed. […] In this context, the Federal Reserve (Fed) would have incentives to keep its rate still at high levels for a while longer.“, he claimed.

The last Fed meeting was held last Wednesday. In its minutes, the US entity considered that interest rates have reached their ceiling, but there is still a possibility that future increases will be ordered if economic conditions require it.

“This whole situation occurred in the middle of a market that believed that the first rate cut would occur as quickly as in March. However, most analysts expect that the cuts will only occur in the second part of the year, precisely because the country’s economy is solid.”Falen added.

Weekly summary

The foreign exchange market week began on Wednesday, January 3, when the dollar in Peru was quoted at S/3,735. This was an appreciation of 0.76% compared to the day on Friday, December 29.

From then on, the recovery of the sol against the dollar was slow, but during the day on Thursday, January 4, the exchange rate reached its highest price of the week: S/3.752.

For Pérez, this increase was due to the uncertainty generated around the possible resignation of the Minister of Economy and Finance, Alex Contreras. He also added that once it was known that the official was going to remain in the portfolio, the value of the US currency fell again and closed that day at S / 3,728.