Bloomberg News

Peru’s Sol Rises to 15-Year High on Tax Payments, U.S. Recovery

March 01, 2012

Peru’s sol advanced to its strongest level in 15 years as companies bought the currency to pay local taxes and a fall in U.S. jobless claims boosted demand for higher-yielding, emerging-market assets.

The sol was unchanged at 2.6740 per U.S. dollar at 11:49 a.m. in Lima, according to Deutsche Bank AG’s local unit. The currency earlier touched 2.6720, its strongest level since 1997, data from Peru’s financial regulator show.

“Companies are bringing forward their currency purchases to pay taxes” this month and next, said Samuel Torres, chief executive officer of NCF Bolsa SAB, a Lima-based brokerage. “Good news from the international market has led the sol to a more marked appreciation.”

U.S. stocks climbed as weekly American jobless claims dropped and borrowing costs fell for Spain and France. Copper, Peru’s top export, rose in New York amid stronger growth in Chinese manufacturing.

Peru’s central bank bought $3.68 billion in the first two months of this year to stem gains in the sol, surpassing the $3.51 billion it purchased in all of 2011.

The extra yield investors demand to own Peruvian government bonds instead of U.S. Treasuries dropped 11 basis points, or 0.11 percentage point, to a four-month low of 185, according to JPMorgan Chase & Co.

To contact the reporter on this story: John Quigley in Lima at

To contact the editor responsible for this story: David Papadopoulos at

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