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Local Assets Steady After Dramatic Election Led Sell-off

PERU
  • Fairly strong rejection of 4.00 in USDPEN as markets calm following another initial rout of the local currency at the open.
    • Peruvian bonds and stocks rebounded from Monday's losses as the leading presidential candidate sought to reassure investors who were preparing for a drawn-out count of Sunday's vote.
    • Benchmark bonds pared more than half of their Monday decline as the leftist Pedro Castillo, who has an 80,000-vote lead with more than 95% of ballots counted, sent a statement saying he would pay the country's debt and keep central bank independence. (BBG)
  • USDPEN initial support is seen at a retest of the trendline break around the May highs at 3.88.

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