Peru's Bribery Scandal Is Threatening Region's Best Carry Trade
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Peru’s political turmoil is imperiling the best carry trade in Latin America this year.
The country’s assets sold off in recent days amid calls for President Pedro Pablo Kuczynski, a technocrat beloved by investors, to resign after opposition lawmakers accused him of receiving bribes while he was a government minister a decade ago. It’s a stark reversal after a combination of relatively high interest rates, a steadily gaining currency and bets on faster growth rewarded investors who borrowed in dollars and bought Peruvian soles.