Oct. 21 (Bloomberg) -- Peru’s sol rose for the first day this week on optimism European policy makers are moving closer to containing the region’s debt crisis, spurring demand for higher yielding, emerging-market assets.
The sol advanced 0.1 percent to 2.7210 per U.S. dollar, from 2.7245 yesterday. The currency was little changed this week. Peru’s central bank didn’t buy or sell dollars in the foreign exchange market today, it said on its website.
“Unfortunately for Latin America, it has become European- headline dependent,” said Enrique Alvarez, head of Latin America fixed-income research at IDEAGlobal in New York.
European finance ministers started a six-day negotiation over how to save Greece from default, shield banks from the fallout and build more powerful defense against the debt crisis. As much as 940 billion euros ($1.3 trillion) might be deployed, two people familiar with the discussions said yesterday.
The yield on Peru’s benchmark 7.84 percent sol-denominated bond due August 2020 fell three basis points, or 0.03 percentage point, to 5.72 percent, according to prices compiled by Bloomberg. The bond’s price rose 0.18 centimo to 114.47 centimos per sol.
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