Peru Sol Has Its Worst Month Since March as the Dollar Climbs After a Fed Rate Hike
ECONOMY · PERU
Key Facts
- —The country Peru, the Andean copper and silver exporter, uses its own currency, the Peru sol (PEN). The country holds regional and municipal elections on Sunday 4 October 2026.
- —What happened The dollar rose 1.8% against the sol in September, its biggest monthly gain in six months, the Lima business daily Gestión reported on 1 October.
- —The numbers Central bank data show the interbank rate rising from 3.363 soles per dollar on 31 August to 3.432 on 30 September, a 2.1% rise and the steepest month since March.
- —What it means for you Dollars buy slightly more in Peru, while imports and dollar debts cost more in soles. US$100 bought about 344 soles at Friday’s close, against 336 in late August.
- —Still open Whether the US Federal Reserve raises rates again before year end, and how far Peru’s central bank will sell dollars to slow the sol’s slide.
The Peru sol had its weakest month since March in September, as the dollar gained worldwide after the Federal Reserve raised rates. The dollar rose 1.8% against the sol over the month, the Lima business daily Gestión reported on Thursday 1 October.
The move is real but modest by regional standards. The sol still ended September stronger than a year earlier, and Peru’s central bank has been selling dollars to slow the slide.
What the Fed did on 16 September
The Federal Reserve, the US central bank, raised its benchmark rate by a quarter point on 16 September. The new target range is 3.75% to 4%, approved by a 12–0 vote, according to the Fed’s own statement.
It was the first increase since July 2023, Gestión noted. The Fed said inflation “remains elevated” and that the move would support “a timelier return” to its 2% goal.
Markets had expected the hike itself. What moved them was the hawkish tone of Fed chair Kevin Warsh and projections pointing to more increases, Gestión reported.
How the Peru sol reacted
The Peru sol did not fall straight away. Central bank figures show the interbank rate near 3.36 soles per dollar until 22 September.
It then jumped to 3.45 by 29 September, as long-term US bond yields climbed. Gestión said the 10-year Treasury yield rose from 4.80% to 5.30%, its highest since 2007.
Oil was the other driver. Gestión reported that crude rose above US$100 a barrel in September, with Brent closing the month near US$98.
The same pressure hit metals. Gold and silver fell sharply on 28 September, as Gold Falls 3.7%, Silver 5.4% as Yields and Dollar Climb reported.
What steadies the Peru sol
The Central Reserve Bank of Peru (BCRP) has a single mandate: price stability. It has been adding dollars to the local market to cap sharp moves, Félix Olivares of BTG Pactual Perú told Gestión.
Peru’s metal exports also bring in dollars. Strong copper and gold sales have lifted export earnings this year, as Two Metals Are Carrying Peru’s 33 Percent Export Surge showed.
A year earlier, on 30 September 2025, the dollar cost 3.473 soles. The sol is therefore still about 1% stronger than it was then.
Friday’s US jobs data
US employers added only 29,000 jobs in September, the US Bureau of Labor Statistics said on Friday. Analysts quoted by the Lima daily El Comercio had expected about 90,000.
The weak figure cooled bets on an October hike. In Lima the dollar slipped from 3.453 to 3.436 soles on Friday, El Comercio reported.
Olivares expects the dollar to trade between 3.40 and 3.45 soles in October. Pablo Leno of Renta 4 told Gestión the rise could continue with less momentum.
What Is Not Yet Known
It is not clear whether the Fed will raise rates again in 2026. Gestión said most Fed officials expect at least one more increase this year.
Nor is it known how much the BCRP will spend defending the sol. Peru also holds regional and municipal elections on Sunday, covered in Peru Election Dry Law Starts Saturday With Alcohol Ban.
Sources: Gestión, 1 October 2026; Gestión, 17 September 2026; Federal Reserve, FOMC statement, 16 September 2026; Central Reserve Bank of Peru, interbank exchange-rate series; US Bureau of Labor Statistics, Employment Situation, 2 October 2026; El Comercio, 2 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief