Currencies June 25, 2026 02:20 PM

Barclays Lifts Year-End Peru Sol Forecast to 3.30 After Runoff Results Point to Fujimori Lead

Bank points to preliminary election returns and Peru's external balance as drivers of recent sol strength and revises its USD/PEN outlook

By Ajmal Hussain
Share
Twitter Reddit Facebook LinkedIn

Barclays has revised its year-end forecast for the Peruvian sol to 3.30 per U.S. dollar, citing preliminary presidential runoff returns that indicate a likely win for right-wing candidate Keiko Fujimori and the country’s robust external position, boosted by high copper prices and a large trade surplus. The bank says market pricing and central bank FX intervention reflect the perceived probability of her victory, while a late reversal favoring opponent Sánchez would likely prompt a negative market reaction.

Barclays Lifts Year-End Peru Sol Forecast to 3.30 After Runoff Results Point to Fujimori Lead
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Barclays raised its year-end USD/PEN forecast to 3.30, citing preliminary runoff results and a strong external position - markets and foreign-exchange operations have already reflected growing confidence in a Fujimori win. (Impacted sectors: foreign exchange markets, monetary authorities)
  • Preliminary returns indicate a likely victory for right-wing candidate Keiko Fujimori, though results remain uncertified - market pricing has driven recent sol appreciation and central bank dollar purchases. (Impacted sectors: currency traders, financial markets)
  • Peru's external strength, driven by elevated copper prices and a sizable trade surplus, serves as a key support for the sol according to Barclays - this underpins the bank's expectation of further sol appreciation once political risks abate. (Impacted sectors: commodities, export sector, balance-of-payments-sensitive markets)

Barclays has raised its year-end projection for the Peruvian sol to 3.30 against the U.S. dollar, pointing to early presidential runoff results and what it describes as a solid external position for Peru.

Preliminary tallies from the presidential runoff indicate a probable victory for Keiko Fujimori, a right-wing candidate, though those results have not been formally certified. Barclays notes markets are assigning a high probability to her eventual win. That market view is reflected in recent appreciation of the sol and in central bank foreign-exchange operations, where authorities have intervened by purchasing dollars.

The bank warns that a late swing in favor of Fujimori's opponent, Pedro Sánchez, would likely provoke a negative market response. Barclays cites Sánchez's support for a more interventionist policy approach and proposals to convene a constitutional assembly as reasons such an outcome would raise questions about policy predictability and institutional stability.

Beyond these near-term political dynamics, Barclays highlights Peru's strong external position as a continued anchor for the sol. The bank points to elevated copper prices and a sizeable trade surplus as supporting factors for that external strength.

On that basis, Barclays expects the sol to strengthen toward 3.30 per dollar by year-end once political uncertainty eases. The forecast reflects the bank's assessment that current market pricing, exchange-rate intervention and external balances together underpin the currency outlook.

Investors and market participants will be watching both the certification process for the runoff and incoming data on copper and trade balances, as these elements are central to Barclays's revised projection.

Risks

  • A late reversal in the runoff in favor of Sánchez could trigger a negative market reaction due to his support for more interventionist policies and proposals to convene a constitutional assembly - this risk affects currency stability and investor confidence. (Impacted sectors: currency markets, institutional stability-sensitive assets)
  • Political uncertainty during the certification period could continue to influence exchange-rate moves and prompt central bank intervention, creating volatility for traders and businesses exposed to FX fluctuations. (Impacted sectors: exporters, importers, financial markets)

More from Currencies

Barclays Sees Ruble Losing Ground as Dollar Strength, Lower Oil and Fiscal Rule Weigh Jun 25, 2026 Barclays Flags Oil Imports and Weak Copper Output as Drivers of Chilean Peso Underperformance Jun 25, 2026 Barclays: Colombia peso likely to find support after presidential run-off Jun 25, 2026 Barclays Sees Czech Koruna Holding Firm as CNB Maintains Hawkish Line Jun 25, 2026 Rand Strengthens After U.S. Inflation Reads; Local Producer Prices Rise Faster Than Expected Jun 25, 2026