Sol To Remain Subdued In The Medium Term

The Peruvian nuevo sol failed to break below seven-year trendline support at PEN3.2500/US$ last week, bouncing off that level to close at PEN3.2180/US$ on March 6. While we do not believe that the sol is off the hook just yet, we note that further short-term appreciation may be on the cards. We attribute this in large part to the recent rally in base metals, such as copper and zinc.

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