Moreover, with Mondoza out, Citigroup Inc. strategists Dirk Willer and Kenneth Lam projected that the Peruvian sol currency may no longer depreciate against the U.S. dollar. The stronger currency outlook would also bolster the emerging market, along with EPU, which is currency swings.
Peru is a major gold, silver and copper miner. Peruvian equities have been increasing this year on the recovering metals markets.
EPU gained 24.3% year-to-date. EPU includes a heavy 51.2% tilt toward the materials sector, including a large 19.1% weight in Southern Copper Corp, followed by 27.4% in financials.
Peru’s miners are also being supported by the broader rally in the global mining industry on Monday. [Metals & Mining ETFs Jump Ahead of Alcoa Earnings]
iShares MSCI All Peru Capped ETF