Peru’s sol fell to a one-month low as a weaker outlook for global growth fueled a sell-off in copper, the South American country’s top export.
The sol depreciated 0.2 percent at 2.5940 per U.S. dollar at 1:58 p.m. in Lima, the weakest level on a closing basis since March 18, according to prices from Datatec.
Copper fell the most in a year after the International Monetary Fund lowered its forecast yesterday for global growth and predicted that China, the world’s biggest consumer of industrial metals, would grow less than earlier expected. Peru is the world’s third-largest copper and zinc producer, with metals accounting for about two-thirds of exports.
“The sol has to lose some ground,” Pedro Tuesta, a Latin America economist at 4Cast Inc., said in a telephone interview from Washington.
The yield on the 7.84 percent sol bond due in August 2020 dropped less than one basis point, or 0.01 percentage point, to 3.73 percent, according to data compiled by Bloomberg. The price increased 0.01 centimo to 125.97 centimos per sol.
To contact the reporter on this story: John Quigley in Lima at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org