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Local Currency Optimism May Diminish Following First Round Election

PERU
  • The March rally in USDPEN had been entirely reversed in just a few trading days to start April, with the pair trading back below 3.60 for the first time since mid-December.
  • Analysts had noted potential optimism regarding the likelihood of a market-friendly candidate, Hernando de Soto making it through to the June runoff, prompting the sharp reversal from March 30 highs of 3.7739.
  • The election results and especially the likelihood of a divided congress provides greater uncertainty and may weigh on the Sol in the short term.

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