Peru’s sol climbed to a two-week high after a report that showed the U.S. economy generated more jobs than forecast in July eased concern that the world recovery is faltering and boosted global markets.
The sol advanced 0.3 percent to 2.6210 per U.S. dollar today, the strongest level since July 19. The currency rose 0.1 percent this week.
“It’s reacting to the strong rally we’ve seen in stock markets around the world today,” said Gonzalo Navarro, the head trader at Banco Santander in Lima, in a phone interview from Lima.
Global stocks jumped after U.S. payrolls increased 163,000 following a revised 64,000 gain in June, Labor Department figures showed today in Washington. The median estimate of 89 economists surveyed by Bloomberg called for a gain of 100,000. The Stoxx 600 (SXXP) Index rallied 2.4 percent, while the Standard & Poor’s 500 Index (SPX) gained 1.9 percent.
The central bank didn’t buy or sell dollars in the spot market today. The last time the sol closed at this level, the central bank purchased $164 million to stem gains against the U.S. dollar.
The yield on Peru’s benchmark 7.84 percent sol-denominated bond due August 2020 rose two basis points, or 0.02 percentage point, to 4.55 percent, according to prices compiled by Bloomberg. The bond’s price fell 0.18 centimo to 121.74 centimos per sol.
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