Argentina market analysts see silver lining in Peronist election win
© Reuters. Argentina's presidential candidate Sergio Massa addresses supporters, as he reacts to the results of the presidential election, Argentina October 22, 2023. REUTERS/Mariana Nedelcu
Analysts said the result should alleviate fears about a sudden devaluation of the local peso currency and reduce the likelihood of the country ditching the peso any time soon, with the eventual winner likely to have a weak mandate."Many assets had begun to price in a disorderly dollarization, so the dollar could ease a bit," he added.
Argentina is facing its worst economic crisis in two decades, with triple digit inflation driving a cost of living crisis, mounting debts and a recession looming after a painful drought. Out-of-hours trading in the so-called"crypto dollar" suggested a slight currency strengthening in parallel exchange rates which are far away from the controlled official one.