Exchange rate: Why did the dollar close higher on Monday?

The price of the dollar in Peru closed higher on Monday, in the first session of the week, and faced with concerns about possible new restrictions as a result of the arrival of the Omicron variant of COVID-19 in the country. The exchange rate closed the day at S / 4,052, an advance of 0.34% compared to Friday’s price, at S / 4,038, according to data from the Central Reserve Bank of Peru (BCR). So far this year, the greenback accumulates an increase of 11.96% compared to the end of 2020, at S / 3,619.

Asvim Asencios, Income4 SAB Currency Trader explains that he explains that “The devaluation of the sun is mainly impacted by the economic uncertainty generated by the recent social conflicts in the main mining companies in the country.”

“At the national level, it is expected that this week there will be a meeting on Tuesday 12/21 for authorities, civil society organizations and communities of Chumbivilcas to discuss the demands and the solution of the conflict before the closure of operations of the mining company. las Bambas, which represents more than 1% of the country’s GDP. Last week the exchange rate had a slight correction due to the payments of taxes and bonuses by the companies ”, adds Asencios.

It also mentions that the new variant Omicron is still a high risk factor, “Since in Peru there have been 12 cases and this new variant has a higher probability of reinfection, for which in other countries different activities have been suspended.”

“At the international level, the last meeting of the FED last week indicated that the withdrawal of stimulus to the US economy will accelerate, because they already have key indicators of a robust economy, FED officials lean towards 3 interest rate hikes in 2022 ″, he comments.