Overview
- Argentine equities and some sovereign bonds jumped after the White House announced a broad trade and investment framework with Argentina, with the S&P Merval up roughly 4% and several export-linked shares leading gains.
- The official dollar in Argentina fell over the week and closed at 1,425 pesos for sale at Banco Nación, while the wholesale rate near 1,403 stayed well below the exchange-band ceiling.
- Record corporate external debt placements exceeding US$3.1 billion in about two weeks increased hard-currency supply, helping stabilize the FX market.
- Market participants increasingly expect the banded exchange-rate regime to persist following statements by President Javier Milei and Economy Minister Luis Caputo, and futures are aligning with the band path.
- Peru’s central bank bought US$104 million in the spot market—its first such purchases since April 2020—to reduce exchange-rate volatility as the sol strengthened to around S/3.37, against a backdrop of Fed-policy uncertainty from missing U.S. data.