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Peruvian currency closes at a record low amid electoral uncertainty

LIMA, Apr 23 (Reuters) – The Peruvian currency fell for the sixth consecutive day on Friday and closed operations at an all-time low, in a week in which polls were released that gave the socialist Pedro Castillo an advantage for the June presidential ballot.

The sol depreciated in the session by 0.82%, to 3,787 / 3,790 units per dollar, despite the intervention of the central bank with about 41 million dollars in the spot market and with about 697 million soles in exchange swaps. During the week, the local currency fell 4.29%.

“We are with a new historical record in the midst of a context of great uncertainty regarding the electoral process, the sun is mainly affected by the local situation rather than by the external situation,” commented an operator.

Castillo, who is proposing a referendum to draft a new Constitution, has 41% of the voting intentions; While ex-legislator Fujimori, who is running for the presidency for the third time, 26%, said a poll by Datum Internacional published on Thursday in the newspaper Gestión.

In a previous poll, conducted by Ipsos Peru and published on Sunday, Castillo obtained 41% and Fujimori 31%.

After the presidential and parliamentary elections of April 11, the Peruvian currency has depreciated by 4.55%. The fall does not stop despite the candidate Castillo said on Thursday that he will not nationalize companies and that he will respect the country’s legal rules, in an attempt to calm the markets.

“We are internalizing what we see in the polls. People are quite reluctant to sell their dollars, everyone has dollars but nobody wants to sell them,” said another agent at the money desk of a local bank.

According to market operators, local companies are the main buyers of the US currency, registering a record of 1.6 billion dollars in claims in April, more than double that registered in the previous months of 2021.

(Report by Maria Cervantes, edited by Marco Aquino)

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