ARS: Depreciation To Continue

While the pace of depreciation has slowed in recent months, we see little threat to our view that the Argentine peso will continue to weaken against the US dollar in both the short and medium term. Rather, with the government showing no sign of letting up on its heavy intervention schedule - the central bank's stockpile of reserves has continued to grow at a rapid clip during January - we believe that the unit is well on the way to testing the psychologically significant ARS4.000/US$ level over the coming weeks, with a break through this area very much on the cards later in 2011.

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