In January, the dollar In the Peruvian interbank market it reached its lowest level in 6 years. For the second consecutive session, the greenback closed at S/3.346 per unit on Thursday, January 29, with which the sun accumulated an appreciation of 0.54%.
Even the gain of the Peruvian currency could have been greater if the Central Reserve Bank (BCR) had refrained from intervening in the exchange market to avoid volatility.
According to the BCR, until said closure it purchased US$2,955 million and used sterilization instruments (certificates of deposits for US$998 million and exchange purchase swaps for US$10 million) to mitigate the excess supply of foreign currency.
However, something changed on Friday, January 30. The dollar not only erased the losses accumulated in the month, but also reported gains. With this, the sun ended with a depreciation of 0.18%.
The blow
The low blow of the dollar that made the Peruvian currency fall came from Donald Trump. The US president appointed Kevin Warsh as Jerome Powell’s next successor as Fed chairman.
Warsh has a PhD in Law from Harvard and a degree in Public Policy, with special emphasis in economics and statistics, from Stanford. He has extensive experience on Wall Street and has already been governor of the Fed. A resume sufficient to guarantee good management of the central bank if it were not for the fact that Trump, since he began his mandate, has been pressuring the Fed to exercise greater control over the setting of interest rates.
“I have known Kevin for a long time and I have no doubt that he will go down in history as one of the great Fed chairs, perhaps the best. On top of everything, he is ‘central casting’ and he will never let you down,” Trump said in a social media post. ‘Central casting’ is a colloquial expression that the US president uses to say that Warsh has the exact appearance and bearing of a central bank president.
Trump said it would be inappropriate to ask Warsh whether he will cut interest rates, saying he wanted to keep his nominee “nice and pure.” However, the president said he is convinced that Warsh is inclined to reduce them.
DATA
Renta4 SAB projected that the dollar would rise to S/3.60 by July 2026, driven by electoral volatility.
After the electoral period, The exchange rate would tend to correct to levels close to S/3.40 by December 2026, supported by solid macro fundamentals.
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