2023-10-07 00:04:00
The free dollar registered an intraday maximum of 895 pesos.
The Argentine financial market ended this Friday with disparate trends due to persistent hedging in currencies and stocks before a close presidential election with an uncertain result.
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The free price of the dollar ended up trading at $880 for sale, with a rise of 37 pesos or 4.4% this Friday. In the followingnoon the bill was trading at a nominal record of 895 pesos. With a wholesale dollar that ended the week at $350.10, the exchange gap remained at 151.4 percent. The free dollar closed the first week of October with a gain of 80 pesos or 10 percent.
This Friday the MEP dollar in the PPT segment of ByMA – where the BCRA intervenes – closed at $820.01 with the Bonar 2030 (AL30D), with an increase of 35.45 pesos or 4.5 percent. Salvador Vitelli, head of Research at Romano Group, estimated MEP sales at the hands of the monetary entity at regarding USD 60 million, in exchange for dollar bonds.
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The libertarian Javier Milei, who proposes dollarizing the economy and eliminating the Central Bank, will measure his strength once morest the Minister of Economy, Sergio Massa, who defends the peso – with a digital currency project – and the leader of Together for Change Patricia Bullrich, which promotes bimonetization.
The free dollar regained its upward path a day following the market remained inactive due to intense controls by supervisory entities in the Buenos Aires downtown
“The electoral and economic uncertainty that has not eased in recent weeks leading up to the elections has been conditioning domestic assets,” said economist Gustavo Ber. ”Investors favor not only hedging in this delicate stage but also defensive strategies while awaiting key definitions,” he stated.
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The uncertain near future means that no one wants to stay in pesos and this puts pressure on the market,” a bank operator told Archyde.com. And he pointed out that “the obstacles that seek to stop alternative dollars are useless.”
The National Securities Commission (CNV) extended this Friday the ‘parking’ period for bond operations with settlement in foreign currency with the purpose of decompressing pressures on alternative exchange markets.
Added to the political doubts is economic confusion, due to triple-digit inflation estimated for this year, strong fiscal spending, scarce reserves in the Central Bank and social discontent with poverty that reaches 40.1% of the population. .
In a wholesale session with business for USD 421.9 million in the cash segment, the BCRA ended its intervention with a selling balance of 91 million dollars. In this way, so far in October the BCRA has recorded net sales of 178 million dollars.
“Financial dollars continue to be sustained beyond the latest regulations, since the search for coverage continues to push strongly once morest the political panorama and the fiscal and monetary ‘combo’ that point to accelerated inflation and nominality of the economy,” said Ber . The Government operates strongly in the bond market in order to mitigate the rise of alternative dollars, operators agree.
Source: Rava Bursátil-prices in dollars.
Future dollar deals were agreed in ROFEX at 712.50 pesos for the end of the year and at 1,370 pesos per dollar for August 2024.
In the stock market, the leading benchmark S&P Merval of Buenos Aires improved 2.6%, to a close of 628,917 units, accumulating an increase of 11.8% in pesos during the week. Among the shares and ADRs of Argentine companies traded in dollars on the New York stock exchanges, gains predominated, led by IRSA (+2.7%).
Dollar bonds showed a significant improvement. The Globals of the exchange – in dollars with foreign law – bounced 1.5% on average on Wall Street and interrupted a bearish series that extended through 15 operating wheels. Meanwhile, JP Morgan’s country risk cut 51 units for Argentina, by 2,675 basis points.
Sovereign bonds in the Electronic Open Market (MAE) gained 0.8% in their average in pesos, in an unstable session, thus accumulating a drop of 0.7 percent in the week.
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