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U.S. Treasury Confirms Peso Purchases, Pledges Up to $40 Billion as Argentine Markets Whipsaw

The peso closed near 1,408 officially and 1,450 on the blue market as investors fixate on this week’s ARS 3.9 trillion rollover ahead of the Oct. 26 elections.

Overview

  • After President Trump’s comments tying U.S. aid to legislative results, the Treasury said it bought pesos in Argentina’s open market and outlined support that could total about US$40 billion.
  • By the close, the official dollar averaged ARS 1,408 for sale (Banco Nación ARS 1,405) and the blue finished near ARS 1,450 following wide intraday swings.
  • Dollar bonds and Argentine ADRs staged a partial rebound while MEP and CCL eased, as country risk stayed above 1,000 basis points and exchange-rate volatility remained elevated.
  • Economy Minister Luis Caputo moved to calm investors, pointing to imminent U.S. investment and trade announcements and reaffirming the band-based foreign-exchange framework.
  • Attention turns to rolling roughly ARS 3.9 trillion in Treasury maturities this week, with tight peso liquidity and analysts cautioning that a post-election adjustment of the official rate is possible.