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Peru's sol briefly dropped 2.1% at the open on April 12 after socialist candidate Pedro Castillo took a surprise lead in the first round of the presidential election. Central bank intervention pulled the currency back to end slightly up, while the 2030 sovereign bond hit its lowest level since August 2020.
Political risk from a possible Castillo presidency raises the cost of capital and pressures the sol, which can lift the USD/PEN rate and weigh on Peruvian import demand for feed. Currency volatility also affects Peru's fishmeal and mining-linked spending.
reuters.comMarc JonesApr 12, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
