Peru’s Sol Climbs as Front-Runner Stays in Presidential Race

March 31, 2016

  • Currency rises as Keiko Fujimori cleared in vote-buying case
  • Sol earlier led gains among most-traded global currencies

March 28, 2016 (Bloomberg) – Peru’s sol strengthened after presidential front-runner Keiko Fujimori was cleared of vote-buying allegations, easing concern that lesser-known candidates would gain ground two weeks before the election.

The sol advanced 0.2 percent to 3.372 per dollar at the close of trading in Lima, according to Datatec prices. It earlier rose as much as 1.5 percent, leading gains among the world’s most-traded currencies.

Investors bid up Peruvian assets on speculation that Fujimori presents the best chance for sustaining growth in the Andean economy. A Lima electoral board cleared her on March 24 of handing out money in exchange for votes, and said there were no grounds for barring her from running. After two other candidates were barred this month for alleged violations, disqualifying Fujimori would have called into question the soundness of Peru’s electoral process, Citigroup Inc. said in a March 22 note to clients.

“Keiko’s confirmation made people happy,” said Eduardo Suarez, the co-head of Latin America fixed income and currency strategy at Bank of Nova Scotia. Having Fujimori and Pedro Pablo Kuczynski as the top two candidates “is good news” for investors, Suarez said.

Peru’s currency market was closed on March 24 and March 25 for national holidays.