Home Markets EMERGING MARKETS-Peru’s sol leads Latam FX losses as Castillo takes Presidency

EMERGING MARKETS-Peru’s sol leads Latam FX losses as Castillo takes Presidency

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By Ambar Warrick July 20 (Reuters) – Peru’s sol led losses across Latin American currencies on Tuesday after socialist candidate Pedro Castillo was confirmed as president, while trade in most other units was muted on fears of an economic slowdown due to the Delta coronavirus variant. Peru’s sol fell 0.5% to 3.9581 to the dollar, coming close to a record low of 3.9871 after dropping 1.4% on Monday, its worst day in more than a month, after Castillo’s confirmation. Castillo has pledged to redraft the constitution and hike taxes on mining firms in the world’s second-largest copper producer, although he has taken a more moderate line in recent weeks and hinted at a more market-friendly approach. MSCI’s index of Latin American (Latam) currencies shed 0.1%, after a 1.8% loss on Monday saw it log its worst day since September. A rise in cases of the infectious Delta variant sparked a sharp selloff across most risk-driven assets this week, on fears that a…

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