UPDATE 1-Peruvian currency recovers; market attentive to population reaction by new cabinet

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By Maria Cervantes

LIMA, Nov 17 (.) – Peru’s currency rose 0.95% on Tuesday, its biggest inter-day percentage rise in seven months, following the appointment of centrist Francisco Sagasti as the new interim president, although the market remains alert to the reaction of protesters.

* At 11:17 a.m. local time (1617 GMT), the sol was trading at 3,630 / 3,632 units per dollar, registering its highest daily gain since April 6; while the benchmark of the Lima Stock Exchange fell 0.10%, to 483.96 points, according to operators.

* The designated interim president, Francisco Sagasti, on Tuesday fine-tuned a team of ministers whose challenge will be to calm the discontent of the population who distrust their politicians with a history of accusations of corruption.

* “It has been quite positive, the first concern was how accepted Sagasti was going to be in the streets, but the protests were reduced and a way out of the crisis seems to have been found,” said a local bank operator.

* The operator added, however, that “investors are still waiting for the Constitutional Court’s decision on Martín Vizcarra.” The highest court is pending a lawsuit that could annul – according to some experts – the decision of Congress on the removal of the former president that triggered the protests.

* The market also expects to know the new cabinet of ministers and “how the population will react to these events.”

* Peru, the world’s second largest copper producer, has experienced constant corruption scandals that have led three former presidents to preventive or home detention and another to suicide in the last two decades.

* Sagasti, a legislator from the centrist Purple Party, will be sworn in at 4:00 p.m. local time (21000 GMT) to complete the government mandate that ends in July 2021 and will include the holding of elections on April 11. (Report by María Cervantes, Edited by Marco Aquino)