Bloomberg News

Peru Sol Falls for First Time in Four Days on European Weakness

July 04, 2012

Peru’s sol dropped for the first time in four days on concern the European debt crisis is slowing global growth, curbing demand for emerging-market assets.

The sol fell 0.1 percent to 2.6455 per dollar at the close, according to Deutsche Bank AG’s local unit. The central bank didn’t buy or sell dollars in the spot market today.

Germany’s government bonds rose on demand for a refuge as a survey of purchasing managers showed the nation’s services industries unexpectedly shrank last month. Another report indicated growth of services in the U.K. was the slowest in eight months.

The reports may have prompted some “profit taking after three days of gains in the sol,” said Gonzalo Navarro, the head trader at Banco Santander in Lima.

The yield on the 7.84 percent sol-denominated bond due in August 2020 increased one basis point, or 0.01 percentage point, to 4.99 percent, according to prices compiled by Bloomberg. The bond’s price fell 0.11 centimo to 118.71 centimos per sol.

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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