Bloomberg News

Peru’s Sol Touches Three-Year High on Global Manufacturing Data

February 01, 2012

Feb. 1 (Bloomberg) -- Peru’s sol rose to a three-year high as signs global manufacturing is strengthening boosted demand for higher-yielding, emerging market assets.

The sol ended the day little changed at 2.6895 per U.S. dollar, from 2.6890 yesterday, according to Deutsche Bank AG’s local unit. The currency earlier touched 2.6885, its strongest since at least December 2008.

U.S. manufacturing grew at the fastest pace since June, the U.K.’s factory measure unexpectedly reached an eight-month high and manufacturing gauges in Europe, China and India increased in January.

“The data generated optimism that the crisis in the euro- zone isn’t going to spread and that the U.S. and emerging markets are going to keep growing regardless of what happens in Europe,” said Roberto Flores, head of research at Lima-based brokerage Inteligo SAB.

The country’s central bank bought the most dollars in two months to temper gains in the sol. It purchased $293 million and paid an average 2.6889 soles per dollar, the bank said in a statement on its website.

The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 fell three basis points, or 0.03 percentage point, to 5.67 percent, according to prices compiled by Bloomberg. The bond’s price climbed 0.17 centimo to 114.46 centimos per sol.

--Editor: 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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