Peru’s Currency Continues to Depreciate, Reaches One-Year Low

Peru’s currency, the sol, continued to weaken in the first three days of this week, closing Wednesday at one of its weakest levels in about a year.

The sol has been appreciating steadily over the past decade, but has so far this year lost ground against the dollar.

Volatility in the global economy, the possibility that the United States will start to peel back its stimulus plan, slower-than-expected growth in China, and sluggish growth in Peru, are all contributing to a weaker sol and stronger dollar.

On Wednesday, the sol closed at 2.702 per dollar, the weakest it has been against the greenback since June 4, 2012, according to daily Peru.21.

The sol has weakened almost 6 percent so far this year. It had been seeing annual appreciations of about 5 percent in recent years. Many economists have been predicting that the sol will return to its trend of appreciation, although it is unclear when that could happen.

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