Peru Dollar Exchange Rate: Decline in US Economy Sparks Possible Interest Rate Relaxation by the Federal Reserve

2023-06-30 18:41:24

The dollar in Peru closed lower this Friday, after data from the US economy that pointed to a possible relaxation in interest rate hikes by the Federal Reserve (Fed).

The exchange rate ended the day at S/ 3,626 per dollar, a drop compared to Wednesday’s close of S/ 3,633 (Thursday was a holiday in Peru), according to data from the Central Reserve Bank of Peru (BCRP).

So far this year, the greenback has accumulated a 4.75% decline compared to the last price of 2022, at S/ 3,807.

ALSO READ: Dollar chains fifth month down in June, will it reverse trend next month?

Parallel market

In the parallel market or the main exchange houses, the dollar is bought at S/ 3.61 and sold at S/ 3.64, according to data from the portal .

Likewise, the average price in the banking market stands at S/ 3,628 for purchase and S/ 3,636 for sale.

dollar globally

Most of the Latin American currencies posted gains in early business on Friday, driven by a drop in the dollar in global markets, which weakened after data from the US economy pointed to a possible easing in interest rate hikes. by the Federal Reserve (Fed).

US consumer spending slowed sharply in May, but continued strong underlying inflationary pressures could force the Federal Reserve to resume raising interest rates next month.

Consumer spending rose 0.1% last month, the Commerce Department reported on Friday. Data for April was revised down to show spending accelerating to 0.6%, instead of the previously announced 0.8%.

According to Archyde.com, futures linked to the Fed’s key interest rate, which before the data was released gave an almost 90% probability of a rate hike in July, now reflect an 85% probability.

ALSO READ: Banking paid triple in interest to its savers than a year ago

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