Sol To Keep Shining

June 2004 | Currency Forecast

The Peruvian central bank has sought to maintain currency stability through intervention in the foreign exchange market,. Indeed, it is likely to make a record amount of dollar purchases this year, thus supporting the competitiveness of exports. Since January, the sol has not breached the PEN3.4560/US$ resistance level, and looks unlikely to do so in the near future. However, despite periodic political instability, and central bank intervention to maintain a weak currency, the sol has seen a slight rally in May and June as investors have been reassured by strong economic fundamentals. Low inflation, the result of

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