Argentine Peso pummeled 1.8 percent on election, global slowdown bubbles
by SOURAV D | VIEW 942
Crisis-struck Argentine currency, which shed more than 102.50 percent last year and roughly 18 percent so far this year, tumbled 1.8 percent further on Monday, the 5th of August 2019, to 45.49 per US dollar in context of a swath of uncertainties circulating around the Latin American country’s presidential election alongside a flurry of intensified slowdown concerns.
Since Argentina is set to hold a presidential election on next Sunday (August 11th), while current President, Mauricio Macri of center-right political party Republican Pro, a businessmen’s favorite, was expected to witness a landslide defeat to opposition candidate Alberto Fernandez, a left-wing populist, Argentine traders went for a sweeping sell-off of its local currency over a stack of wobbling hobbles that the nation’s currency might devalue further during post-election crisis, which in effect tottered Argentine Peso by 1.8 percent on Monday’s (August 5t ) market wrap-up, just a notch shy of its all-time-record low of 45.83/US dollar hit earlier this year on April 26th.
Adding that post-election market reactions in Argentina, the 24th-largest economy in the world by nominal GDP, would almost entirely depend on the scale of a likely loss for currency President Mauricio Macri, a head of Portfolio Personal Investments, Matias Roig said, “It’s the final countdown to the primaries, plus China related complications in external markets. The next few trading sessions will not be for the weak of heart. ”