Overview

• Local quotes show the dollar trading near its weakest level in almost ten years as the sol extends recent gains.
• Analysts point to softer U.S. data and shifting Federal Reserve rate expectations weakening the dollar, with copper prices and higher export volumes lifting Peru’s FX supply.
• The central bank is engaging in a ‘dirty float,’ intervening modestly to smooth volatility rather than halt the sol’s rise.
• Cheaper imports and reduced burdens for dollar borrowers are offset by pressure on exporters’ revenues and households reliant on remittances.
• Near-term risks flagged by market watchers include Congress-approved pension withdrawals that may add dollar supply and early 2026 election dynamics that could unsettle expectations.