23.09.202514:37:05UTC+00Argentine Peso Rebounds from Historic Lows

The Argentine peso has seen a rebound, strengthening to approximately 1,350 per US dollar, recovering from its record low of 1,475 on September 19th. This recovery is attributed to a series of external assurances, fiscal strategies, and intensified market intervention efforts that have collectively curbed the demand for the dollar. U.S. Treasury Secretary Scott Bessent has indicated that the U.S. is prepared to consider measures such as swap lines, direct dollar purchases, and additional tools to bolster support for Argentina. This announcement has significantly contributed to the peso's rally, as well as an uplift in sovereign bonds. Additionally, Buenos Aires has implemented a temporary suspension of export taxes on major agricultural commodities until the end of October, or until a predetermined exchange rate threshold is met. Meanwhile, the central bank and the treasury have engaged in strategic interventions in the spot market and have employed reserve management tactics to moderate sudden liquidity surges at the upper trading limits, thereby reducing the need for forced sales. The market's pricing adjustments have indicated a diminishment of extreme risks, with international players expressing their readiness to support Argentina. Consequently, short covering activities and a reduction in panic selling have facilitated a more balanced flow of transactions in local markets.