The sol rises as the dollar drops

Economy 6 May, 2009 [ 08:05 ]

Peru's currency keeps on strenghtening


LivinginPeru.com
Isabel Guerra

Yesterday, after almost five months, the pressures on the US dollar exchange rate were so marked that its price dropped to S/. 2.95, when Peru Central Bank (BCR) had to buy dollars to prevent the price from dropping too much.

The exchange rate closed at S/. 2.979.

“The market trends have completely changed. Now everyone wants to sell their dollars and buy soles” said a BCR Treasure manager, summarizing the economic operators' general feeling.

“These are the signs of a trade account more positive each time, and a are also due to some capital inflows higher than we had expected” he detailed.

“This tendency is expected to continue in the long term, because the US foresees high rates of inflation, exactly the opposite as Peru” added Luis Felipe Zegarra, Economist from the Piura University.