Peru Markets Tumble as Castillo Passes Fujimori in Runoff Count
- Assets turn lower as count shows leftist gaining an edge
- Sol sinks to a record low, while stock gauge drops 7%
Pedro Castillo greets his supporters during a rally in Cajamarca, Peru, on June 6.
Photographer: Miguel Yovera/BloombergThis article is for subscribers only.
Peruvian assets tumbled as partial results from Sunday’s presidential election showed Pedro Castillo, the rural school teacher who promises to redistribute wealth, taking a slight lead over Keiko Fujimori. The race remained too close to call.
The currency plunged 2.5%, the biggest single-day decline in a decade, and hit a record low against the dollar while the benchmark stock index tumbled more than 7%. Overseas bonds slumped, and the cost to insure the country’s debt against default ticked higher as investors started to price in the possibility of a left-wing government.