ARS: On A Road To Nowhere

Having depreciated consistently since the start of 2010, the Argentine peso is taking something of a breather, trading within a narrow ARS3.9200-3.9400/US$ range since the start of June. In the short term, we see the government's heavy intervention schedule keeping the unit capped at the ARS3.9400/US$ level, with sideways trading likely over the coming weeks despite ongoing appreciatory pressures. However, should another bout of risk aversion send investors racing to the safety of the US dollar, the peso could be in for a further downleg towards the ARS4.000/US$ level.

To read the full article, please choose one of the following options: