Peru Heads to Presidential Runoff Between Keiko Fujimori and Leftist Roberto Sánchez
Primary region South America
Tags Elections · Protest
Regions South America
Peru's April 12-13 general election produced a runoff between conservative Keiko Fujimori (17.06%) and leftist Roberto Sánchez (12.03%) scheduled for June 7. A record 34 candidates competed. Third-place finisher Rafael López Aliaga alleged fraud and demanded thousands of votes be annulled; EU election observers found no evidence to support the claims. Ipsos Peru polling shows Fujimori and Sánchez deadlocked at 38% each. Markets reacted negatively to Sánchez's advancement: Peru's sol weakened 1.4% against USD and MSCI Peru stock index sank 6.6%. Sánchez, an ally of jailed former president Pedro Castillo, has called for a new constitution establishing a 'plurinational' state.
Strategic interpretation
Peru's chronic political instability — this will be the ninth president in a decade — continues to undermine governance and investor confidence. The market's sharp negative reaction to Sánchez's advancement reflects investor fears about a Castillo-aligned candidate pursuing constitutional reform. Fujimori represents continuity with the conservative establishment but carries her own legal vulnerabilities. The fraud allegations from López Aliaga, despite being dismissed by EU observers, may fuel post-election protests regardless of the outcome.