Overview

• Argentine authorities sold an estimated US$650 million to US$700 million on Friday to prop up the peso, after a US$379 million sale on Thursday, with reported reserves at US$39.407 billion.
• The peso touched and briefly exceeded the central bank’s mobile band ceiling near 1,474.83 per US dollar, triggering interventions permitted under BCRA rules.
• Official data show Argentina’s GDP slipped 0.1% in Q2 versus Q1, with consumption (-1.1%), exports (-2.2%) and investment (-0.5%) weaker, as public spending rose 1.1%.
• Political setbacks and a corruption scandal linked to Javier Milei’s inner circle have dented credibility and accelerated capital outflows, according to market accounts.
• In Brazil, the Ibovespa closed at a nominal record of 145,865.11 and the dollar traded around R$5.32, supported by the Fed’s 25 bp cut and Copom holding the Selic at 15%, though strategists note foreign inflows remain modest.