The price of the dollar in Peru closed with a sharp drop on Wednesday, following the record increase in the reference interest rate of the United States Federal Reservein response to global inflation.
MIRA: Comptroller detects damage of almost S / 1 million in shelter of Municipality of Lima
The exchange rate ended at S/ 3,770 per dollar, a decline of 1.28% compared to Tuesday’s settlement at S/ 3,819, according to the Central Reserve Bank of Peru (BCR).
So far this year, the greenback accumulates a decrease of 5.54% compared to the last price of 2021 at S / 3,991.
“Today’s session began with the opening of the market at S/ 3.8120, today there was little demand in the market, on the side of offshore mixed flows, but without relevant volumes”, said Alexander Javier, Forex trader at Renta4 SAB.
Today in the market US$ 221 million were traded at an average price of S/ 3,797. The local currency had appreciation in the day, the currencies in the regional zone woke up mixed.
MIRA: Fed raises its reference interest rate by half a point, the highest rise in 22 years
In addition, the Federal Reserve increased its reference rate by 0.50 percentage points, as expected by the market. The new rate range is between 0.75 and 1.00%. This is the Fed’s most aggressive move since 2000.
On the other hand, in the parallel market or the main exchange houses, the dollar is bought at S/ 3,780 and sold at S/ 3,820, according to the portal cuantoestaeldolar.pe.
At a regional level, most Latin American markets posted declines on Wednesday, led by the Brazilian real, while awaiting monetary policy decisions from the US Federal Reserve, although currencies such as the Mexican peso and the Peruvian sol bucked the trend. .
According to the Archyde.com agency, currencies succumbed despite the fact that the dollar exhibited declines, because investors evaluated how much of the aggressive line of the United States central bank is already discounted in prices.
“Although Fed Chairman Jerome Powell is expected to announce a historic 50 basis point rate hike later in the followingnoon, investors will be scrutinizing his speech for more clues regarding tapering and easing. US sovereign debt portfolioPierre Veyret, a technical analyst at ActivTrades, said earlier.
“Powell’s words regarding how aggressively the Fed is going to tame inflation are likely to set market sentiment for at least the next couple of weeks, even if riskier assets remain under pressure from other big factors.”he added.
