Dollar falls to S / 4.03 and touches its lowest level in almost two and a half months in the local market

The dollar closed lower on Tuesday for the third consecutive day and hit a low of almost two and a half months in the exchange market due to the intervention of the Central Reserve Bank (BCR), amid a greater global aversion to risk assets product of doubts about the recovery of the world economy supported by the sustained increase in energy costs.

At the end of operations, the dollar price it stood at S / 4.0390 in the interbank market, its lowest level since last July 27, when its price was S / 3.9280. Compared to Monday’s close, the US currency registered a daily drop of 0.84%.

While the dollar it started the day trading higher, then it resumed a downward trend in the face of currency sales. To attenuate the volatility of the exchange rate, the BCR it went out to place exchange swaps and interest rate swaps for S / 100 million and S / 120 million, respectively; and also placed repos to provide dollars for US $ 200 million.

Minutes before the close of the session, the issuing institute sold US $ 10 million in cash, at an average exchange rate of S / 4.0390 per dollar. With this, the BCR accumulates sales of US $ 392 million in September and US $ 9,638 million in the year.

The dollar it began to depreciate after President Pedro Castillo rebuilt the Ministerial Cabinet after accepting the resignation of Guido Bellido. However, some seats in Parliament question the appointment of some new ministers. The market is also attentive to the Gross Domestic Product (GDP) data that will be released on Friday by the National Institute of Statistics and Informatics (INEI).

Internationally, the US currency hit a one-year high due to higher yields in the United States. The index of the dollar, measured by the greenback against a basket of other major currencies, rose to 94,519 points, its highest since the end of September 2020. Two-year US Treasury bond yields reached their highest level in more than 18 months as investors sold US debt, believing that rising energy prices would fuel inflation and increase pressure for the Fed to take action.

“The focus of attention right now is the Treasury rates”said Joseph Trevisani, a senior analyst at FXStreet.com. “The credit markets foresee that the ‘taper’ (reduction of the purchase of bonds) begins in November”he added to Reuters.

With the result of the day, the dollar it cut to 11.61% its accumulated profit against the sun so far in 2021, after closing at S / 3,619 last year.