Death-crossed Argentine Peso remains dithered as Central bank inject $150mn


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Death-crossed Argentine Peso remains dithered as Central bank inject $150mn

On Friday, the 18th of October, the Argentine Peso closed the day with little change, thanks to the Argentine Central Bank which had kept intervening FX market to balance its death-crossed currency against a softer US dollar ahead of a October 27th Presidential election, which would more likely to be owned by the current opposition, Centre-left Alberto Fernandez following a landslide victory in the preliminary round, which was widely blamed behind latest crises in Argentine bond and currency market over frets that a Centre-left Fernandez Government would castrate the debt-laden economy’s outlook further.

Nonetheless, according to multiple media reports and voting polls’ results published in Argentina, Current Argentine President, Mauricio Macri, a businessmen’s favourite would stomach a defeat by a margin of more than 20 per cent.

Amid such political turmoil pouring scorns over the Argentine bonds and currency, the Central Bank of Argentina was forced to intervene into the FX market, whole latest operators’ data had revealed that the Argentine Central Bank had sold more than $150 million over the last week to balance its currency, which had still been harbouring closer to its all-time low to 58.30 peso per US dollar.

Aside from that, media reports had also revealed late on Friday (October 18th) that the Interbank peso had downsized 0.51 per cent over the week and sovereign Argentine bonds had shed 3.5 percentage point on an average.