Bloomberg News

Peru Sol Rises to Three-Year High as Europe Plan Boosts Copper

October 12, 2011

Oct. 12 (Bloomberg) -- Peru’s sol advanced to its highest level in more than three years as copper, the nation’s top export, rose on bets Europe will contain its sovereign debt crisis and spur global demand for the metal.

The sol strengthened 0.2 percent to 2.7245 per U.S. dollar at 11:41 a.m. Lima time, from 2.7310 yesterday. The currency earlier advanced to 2.7215, its strongest since April 2008.

Copper rose as the European Union released a road map of its plans to recapitalize banks and halt the region’s debt turmoil, allaying concern the continent’s slowing economy will derail global growth. Gold, Peru’s second-biggest export, also gained.

“Optimism has returned,” said Ricardo Villamonte, the head trader at Banco de Credito del Peru in Lima. “There’s more confidence that the situation in Europe will improve and won’t affect the United States, China or Peru.”

The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 fell for a sixth day, declining four basis points, or 0.04 percentage point, to 5.74 percent, according to prices compiled by Bloomberg.

--Editors: Marie-France Han, Brendan Walsh

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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