October 10, 2008 / 5:05 PM / 10 years ago

Peru stock trading halted; central bank intervenes

(Adds context, central bank intervention)

LIMA, Oct 10 (Reuters) - Trading on Peru’s stock market was halted indefinitely on Friday after the IGRA index .IGRA plunged over 11 percent, its largest drop ever, while the central bank offered to sell dollars in the currency market.

Global market volatility forced a trading halt shortly after the Lima bourse opened, but the suspension did not prompt a recovery, so the exchange issued its second trading halt of the day and its fourth this week.

The foreign exchange market was also rocky. Peru's central bank offered to sell dollars in an attempt to keep Peru's currency, the sol, from falling too far, too fast. The sol PEN=PE was weaker 0.6 percent weaker at 3.105 per U.S. dollar.

At one moment, a broker bought $1 million at 3.24, putting the sol down nearly 5 percent, traders said.

Stocks throughout Latin America and the world are tanking on a worsening global credit crisis and fears of recession. (Reporting by Jean Luis Arce; Writing by Dana Ford; Editing by James Dalgleish)

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