Skip to content
Subscriber Only

World's Best Stock Rally in Peril as Peru Politics Sink Sol

  • Mendoza's surge in polls spurs selloff in Peruvian assets
  • Bank of America says very likely she advances to second round
Updated on

Peru’s presidential politics are threatening to undermine a rally that fueled the world’s biggest stock gains and pushed up the value of bonds and the sol.

Concern is growing Peru may be headed for a less investor-friendly government after Veronika Mendoza, a congresswoman who favors scrapping inflation targets, raising the minimum wage and toughening environmental laws, moved into a statistical tie for second place before an April 10 election. Her popularity has grown over the past month amid political turmoil that included two candidates getting barred from running and accusations that the leading contenders attempted to buy votes with food, beer and money.