# Socialist surge in election spooks Peru's financial markets

> 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.

- Date: 2021-04-12 · published 2021-04-12T12:00:00.000Z
- Category: macro · region Peru · magnitude low
- Page: https://feedsoft.ai/events/47872-socialist-surge-in-election-spooks-peru-s-financial-markets
- Commodities: [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.md)

## Why it matters

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.

## Read by commodity

- USDPEN: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/article/peru-election-markets-idUSL1N2M51FN/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.