The Peruvian Sol is trading against the Canadian Dollar at 0.34 this morning, down -0.17% with a YTD return of -0.71%. The pair’s open rate was 0.3495, slightly higher than their previous close of 0.3494. PEN/CAD is expected to have a day range between 0.3488 and 0.3496, the 52-week range is forecasted to move between 0.3481 and 0.4229.
Last March when the pandemic hit, PEN jumped to the 0.40 level and maintained strength until May which was a surprise to bulls in favor of CAD. Since last summer PEN/CAD has steadily decreased, moving to the 0.37 support level in September and then to the 0.35 level in December.
Over the last month, the PEN/CAD exchange rate has stayed within the 0.34-0.35 range but is looking like it may fall even further due to Canada’s growing employment rates and oil prices. Bulls are also anticipating CAD to continue gaining momentum based on the recent decisions the Bank of Canada released this week.
The Financial Post reported that the BoC has decided to leave key interest rates unchanged at 0.25% and says “a stronger loonie has re-emerged as a risk to its outlook for inflation” but warns that the recent success of CAD could potentially weaken the competitive nature of Canada’s goods and services.
In Peru, there have been fluctuations in silver, gold, and base metal prices as there have been due to COVID-19 restrictions. This lack of labor has also led to a decrease in materials, supplies, and services which is causing PEN to suffer, the currency has now hit the lowest exchange rate seen in years but there is hope that PEN/CAD will bounce back after widespread distribution of COVID-19 vaccines.
By Surina Nath