Socialist Castillo leads Peruvian Presidential election as Sol hits record low

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Socialist Castillo leads Peruvian Presidential election as Sol hits record low

In what could be contemplated as the latest in a series of potential political depolarization in LATAM economy with far-left leaders leading a majority of South American countries amid a growing influence of Beijing on the region, Peruvian Socialist contender Pedro Castillo had been set to snatch up a landmark triumph over far-right Keito Fujimori in the country’s latest Presidential election on Monday, as Peruvian currency alongside major stock indices were slummed over growing likelihoods of a return of Fabian economy.

Aside from that, Mexican far-right President Lopez Obrador had also lost a super-majority in the country’s mid-term vote on Monday, as the leftist leaders were quoted saying that they would seek to prevent Lopez Obrador to adopt a more nationalist approach while boosting up the numbers of state-controlled entities including energy, as Mexican Peso had surged to a four-week high.

Nevertheless, Mexico’s highly market-oriented economy has had a substantial scale of overhaul over past decades.

Peruvian Sol hits record low, stocks witness worst intra-session plunge in 15 months

In tandem, following the reveal of early-results in Peru’s Presidential election vote count, Peruvian Sol tumbled as much as 2.8 per cent to an all-time low of 3.93 against a sharply weakening American currency, while the country’s stock index took a tattering header of 7.2 per cent, remarking the worst intra-day plunge in more than 15 months.

Meanwhile, signalling a deeply divided socialist-led Government in Peru, Citi wrote in a client note, “Uncertainty around results should preclude a rally in asset prices in the immediate aftermath, as we wait for a final vote count to come.

On Monday’s FX market round off, the US Dollar Index (DXY) measured against a basket of six major currencies on an average toppled 0.21 per cent to 89.94.