Overview
- Peru’s dollar closed at S/3.3680 for a second day as the BCRP let S/500 million in FX swaps expire and bought US$150 million, with US$303 million traded in a tight S/3.3650–S/3.3690 range.
- The dollar is down about 10.4% against the sol in 2025, and BCP and other analysts project further sol strength in 2026 that could dip below S/3.30 if metals stay high, while Q1 2026 ranges of roughly S/3.35–S/3.45 reflect election risk.
- Banxico cut its policy rate 25 bps to 7.0%, and the peso hovered near 18.01 per dollar as the BoJ’s 25 bp hike to 0.75% reduced yen-funded carry trades and pressured emerging-market currencies.
- U.S. CPI for November printed at 2.7% year-to-date, below forecasts, reinforcing market expectations for Federal Reserve rate cuts in 2026 and shaping FX sentiment.
- Argentina’s central bank said exchange bands will adjust by inflation from January 1, with the official rate around $1,475 and blue near $1,485, as Congress gave initial approval to a bill that would let some taxpayers use informal dollars with limited scrutiny, pending the Senate.