The free dollar rose one peso, reached $203 and is on track to close a week from solid to advance. The informal currency is gaining ground thanks to the disarming of positions in pesos by investors who close the carry trade strategies that dominated most of the year and also push up financial prices such as the MEP dollar and the liquidated dollar. .
The blue thus gains $8 so far this week and is only $6 away from reaching the level at which it closed 2021. This fourth week of April seems to mark the end of a totally calm dollar period that dominated the entire first quarter , with investors of all sizes taking positions in assets in inflation-indexed pesos and other paper with which they tried to beat the dollar.
The MEP rises 1.7% today to reach $207.55 per unit, the cash with liquidation advances the same to reach 207.14 pesos. The MEP thus earns 17 pesos only this week, the same as the cash with liquidation.
“The exchange dynamics exhibited in recent days and, particularly, yesterday seems to have confirmed the change in trend in financial dollars. After advancing $1.88 on Tuesday and $2.94 on Wednesday, the CCL soared $9.57 on Thursday, climbing from $194.15 to $203.73. This abrupt jump was positioned as the highest daily rise since May 5, 2020″, recorded a report by Portfolio Personal Inversiones.
“It is worth remembering that the CCL had fallen $44 since then, when the principle agreement with the IMF was reached, to which were added the high nominal rates in pesos that encouraged the carry trade. As is often the case with this strategy, the timing it’s everything. An example of this is that in just three days the carry two months for an investor who was “doing a rate” in pesos with a fixed term adjustable by BADLAR or a little over a month for an investor positioned in the short section of the CER curve,” the report added.
US Federal Reserve (Fed) Chairman Jerome Powell said on Thursday that a half-point rate hike would be “on the table” at the May meeting, while European Central Bank (ECB) officials signaled that Rates in the euro zone might start to rise in July and Catherine Mann of the Bank of England has indicated that the cost of borrowing is likely to rise further.
Fears in central markets regarding a tightening of monetary policy in the US made yesterday a tough day for emerging markets, which hit financial prices for the dollar. In addition, the injection of some $200,000 million in bonds to alleviate inflation at the local level promises that the demand for foreign currency will increase, traders said.
For its part, the Buenos Aires Stock Exchange opened higher on Friday due to speculative purchases in the energy and financial segments, at a time when external markets fell due to signs of an imminent rate hike in the main global economies.
Political tensions in the coalition of the Peronist government of Alberto Fernández and doubts regarding the local economic future, despite a recent agreement with the International Monetary Fund (IMF), weigh on the mood of investors, operators agree.
The stock index S&P Merval improved 0.46% to 91,917.51 pointsat 11.05 in the morning, following losing 1.15% in the previous session.
Global sovereign bonds, meanwhile, also experience declines of the order of 1% throughout the curve. The country risk falls 3 units to 1,727 points.
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