Peru’s central bank increased sales of dollar-linked securities after the sol fell to an eight-week low on bets the Federal Reserve will reduce U.S. monetary stimulus that has boosted demand for emerging-market assets.
Peruvian policy makers declined to follow Brazil’s lead in cutting interest rates yesterday and kept borrowing costs unchanged for a 15th consecutive month as they see inflation slowing to their target.
Peru’s central bank kept borrowing costs unchanged for a fifth month yesterday as the threat of recession in Europe and the U.S. outweighs concern about above- target inflation in the commodity-dependent economy.
Peru’s sol posted its biggest two-day gain in almost eight months as speculation the Federal Reserve will take steps to bolster the U.S. economy spurred demand for higher-yielding, emerging-market assets.
Peru’s sol rose from a three-month low as the central bank abstained from buying dollars in the foreign exchange market and a drop in U.S. jobless claims bolstered the outlook for the world’s largest economy.