MEXICO CITY: Argentina’s battered peso rebounded on Friday, firming more than 6 percent, after the central bank auctioned $250 million in dollar reserves and the International Monetary Fund (IMF) expressed its support for President Mauricio Macri’s government.
The currency weakened 20 percent on Wednesday and Thursday alone after Macri said he would ask the IMF to advance disbursements under a $50 billion financing deal, sparking investor concern that Latin America’s No. 3 economy may fail to meet its debt obligations.
Argentina has “full support of the Fund,” the IMF said in a statement on Friday, helping the currency to slightly recover.
Despite the economic tumult, Argentina’s Merval stock index saw its third straight day of gains, closing on Friday up 9.6 percent. Among the biggest gainers was bank Banco Macro , whose shares soared 20.4 percent.
The Brazilian real and Chilean peso also strengthened.
Mexico’s peso swung erratically during a roller coaster day of news on talks between the United States and Canada aimed at reaching a trilateral trade accord with Mexico, but ultimately remained flat. The country’s benchmark S&P/BMV IPC index was also flat.
Canada’s foreign minister expressed confidence that a trilateral North American Free Trade Agreement could be reached, while US President Donald Trump sent a notice to Congress saying he intends to sign a new trade pact with Mexico, and with Canada if it is willing.
Source: Brecorder
