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GS Note: Shift USDPEN Forecasts Higher

PERU

Currency outlook for PEN appears challenged. Uncertainty in the run-up to April's general elections could weigh on domestic activity in Peru. Also, further currency weakness may be welcomed by policymakers, given that activity in Peru remains 10% below pre-corona-crisis levels.

  • To reflect these risks, they shift their USD/PEN forecasts to 3.55, 3.50 and 3.50 in 3, 6 and 12 months (from 3.50, 3.45 and 3.40 previously).

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