LONDON, June 7 (Reuters) – Investors dumped Peru’s currency and stocks on Monday as results of the weekend’s knife-edge presidential election showed socialist candidate Pedro Castillo edging ahead of conservative rival Keiko Fujimori.
Though the final result may not be known for days, the latest count showed Castillo and Fujimori almost neck-and-neck with over 94% of the vote counted and the remaining rural areas expected to favour Castillo, the son of peasant farmers. read more
Peru’s financial markets have suffered since Castillo scored a surprise first-round victory back in April on promises of more state control of the country’s mining, energy and telecoms industries. read more
With traders sensing the vote might be edging in his favour, the sol currency sank 2.5% against the dollar, its largest daily drop in seven years, while Lima’s main stock market slumped over 7%. (.SPBLPSPT)
“A Castillo win would add significant downside…