The price of the dollar in Peru closed lower on Thursday, in the face of a negative global outlook, due to investors’ concern about the impact that interest rate hikes may have on the deteriorating world economy.
The exchange rate ended at S/ 3,753, a slight decrease of 0.37% compared to Wednesday’s close at S/ 3,767, according to data from the Central Reserve Bank of Peru (BCR).
So far this year, the greenback accumulates a decline of 5.96% compared to the last price of 2021 at S / 3,991, due to an external effect.
“During the day there was upward pressure due to demand from offshore and AFPs, while supply came from corporations. US$ 170 million were traded in the market at an average price of S/ 3.7538″indicated Gianina Villavicencio, Manager of Foreign Exchange Brokerage at Renta4 SAB Peru.
“Today there were currency repo maturities for S/ 500 million and foreign exchange swaps for sale for S/ 100 million, they were not renewed”he added
On the other hand, in the parallel market or the main exchange houses, the dollar is bought at S / 3,730 and sold at S / 3,760, according to the portal cuantoestaeldolar.pe.
At the regional level, most currencies and stock markets in Latin America fell on Thursday, pressured by a negative global outlook, due to investor concern about the impact that interest rate hikes may have on the deteriorating economy. world.
According to the Archyde.com agency, an increase in the yields of the United States Treasury bonds boosted the dollar index, which compares the greenback against a basket of six first-order currencies, around 0.35%.
US Treasury yields rose on Thursday after the European Central Bank (ECB) signaled a series of upcoming interest rate hikes and before the US Treasury Department auctioned 30-year bonds.
The ECB said it will end bond purchases on July 1 and raise interest rates by 25 basis points in the same month. Also, it will raise rates again in September and could opt for a bigger move then if inflation continues to surprise.
“The market considers that the ECB is a bit aggressive. The rise in July, with the possibility of a further rise in September and beyond, I think has pushed yields higher.”said Ben Jeffery, interest rate strategist at BMO Capital Markets in New York.