Bloomberg
Sol registers little change; Restoring Emerging Currencies: Peru FX
(Bloomberg) – The Peruvian sol had changed little, as copper losses could limit local traders’ enthusiasm to follow the profits of their Latin American counterparts. On Tuesday, the sol rose 0.1%, while its main counterparts like Chile and Colombia and Mexico had more substantial moves as traders consider US President Joe Biden’s struggle to get a big stimulus package. The central bank continues to sell dollars via currency swaps almost daily, which helps to keep currency volatility low. The Lima CPI showed that inflation rose 0.74% from the previous month and from 0.05% the previous month, the largest jump in at least three years. The lack of a market for swap rates prevents the impact of such a surprise from being apparent. Biden will continue to push for a major pandemic relief bill even if he has to bypass Senate Republicans, his press secretary said. Traders will look forward to negotiations as a broader aid package would benefit emerging countries. On the other hand, copper is down 0.5% and silver is down in the rally yesterday after CME raised prices. Margin requirements and the CFTC said it was monitoring the (Some of the information comes from FX traders who are familiar with the trades and who asked not to be identified because they are not authorized to speak publicly.) Original Note: PEN Has Changed Little While Latam Currency Peers Rally: Within Peru NOTE: Davison Santana is a currency strategist writing for Bloomberg. The observations he makes are his own and are not intended as investment advice. For more articles like this, visit us at bloomberg.com Subscribe now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP