Left-wing candidate Pedro Castillo led Peru’s presidential election on Monday, prompting the Peruvian currency, stocks and bonds to fall short of expectations of a dramatic victory.
With 94 percent of the vote, Castillo had 50.1 percent and 49.9 percent of his rival Caiko Fujimori, just 26,000 votes out of a potential 24.3 million electorate. Nearly 100,000 votes went to Fujimori on Monday.
Many of the remaining hills had to come from rural areas where Castillo is the strongest. However, there were ballots to be counted from Peruvians living abroad who were likely to support Fujimori.
«[It] It’s too close to be called, but over the last few hours, based on the dynamics of the vote count, it seems to be leaning in its favor. “Castillo,” said Alberto Ramos, head of Latin American economics at Goldman Sachs.
The Sol, which has depreciated sharply in recent weeks in anticipation of a possible victory for Castillo, has lost more than 2 percent against the dollar, selling at around 3.90, the lowest ever.
Shares of Peru fell sharply, the S & P / BVL Peru General index is down about 7% during the day in New York. Country’s dollar-denominated bonds were also marked. One note in the 2050 repayment period was when its price fell by about 2% to $ 129 to $ 1. Another dollar bond maturing in 2031 fell more than 1 percent against the dollar to 99 cents.
“We anticipate the instability of Peruvian assets; we note that protests against the results of both sides are possible in the face of the rigors of the race,” said Citibank.
The election was an extraordinary brawl between populists from opposite ends of the political spectrum.
Castillo is a left-wing crusader elementary school teacher for the oppressed, while Fujimori is the much-loved daughter of formerly authoritarian Peruvian President Alberto Fujimori.
The prospect of Castillo’s victory sparked panic և flight to the capital Among the elite of Peru. The dollar depreciated further against the dollar than any other currency in the world The first round of voting in April, when Castillo first emerged as the leader. Over the past month, dollar-sol transactions have risen by about 20 percent.
Free Peru, Castillo’s party, is led by a Marxist who advocates nationalism, high taxes, a new constitution, and restrictions on imports into one of the world’s largest producers of copper, zinc, and precious metals. Unlike Fujimori, he mainly supports the economic model of Peru.
Castillo moved the people of the poor, neglected villages of the Andes with a simple but powerful message. “In a rich country there are no other poor people.” At the same time, Fujimori’s bid to become Peru’s first female president has been complicated by allegations of corruption, which she denies.
Whoever wins will not have a majority in the congress. Castillo’s party has 37 of the 130 seats in Peru’s unicameral parliament and Fujimori has only 24, although the house is full of other right-wing parties that may be willing to cut ties with him to make Castillo’s life difficult.