June 8, 2011 / 4:16 PM / 7 years ago

Peru stocks, currency firm as Humala fears ease

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LIMA, June 8 (Reuters) - Peru’s benchmark stock index .IGRA rose 3.7 percent on Wednesday, a day after ratings agencies said the country’s investment-grade credit was not put at risk by leftist Ollanta Humala’s win in Sunday’s presidential election.

The local sol currency PEN=PE bid 0.1 percent stronger at 2.784 per U.S. dollar.

Peru markets tumbled on Monday as investors panicked over the narrow victory of the former army officer, who once sympathized with Venezuelan President Hugo Chavez.

But assets have since rebounded as the president-elect has adopted a conciliatory tone and pledged to implement market-friendly policies.

“We think the path for Peru is its own road, without copying other countries. That needs to be very clear,” he said when asked to respond to critics who say he will be another Chavez. For details, see [ID:nN07175230]

Credit ratings agencies Moody’s Investors Service and Standard & Poor’s said on Tuesday that Peru’s investment-grade ratings was not at risk and the country’s economic fundamentals remain strong. [ID:nWNA0443]

“That meant there is not much risk and markets did not have to fall so much; the government is going to pacify,” said Leoncio Altamirano, an analyst with Juan Magot Brokerage in Lima.

Humala has heavily moderated his policies since losing the 2006 presidential election, and he played down Monday’s plunge in Peru’s financial markets, saying the partial recovery on Tuesday showed it was a blip.

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