Peso Still Weak Despite Strong Fundamentals

November 2006 | Market Strategy

The Argentine peso has experienced a slight appreciation since the beginning of October, rising by 1.1% from ARS3.1051/US$ to ARS3.0723/US$ on November 24. The currency has recently been testing key resistance at around ARS3.0620/US$, which, if broken, could set up further appreciation to ARS3.0310/US$. A rally in local debt markets and the significant gains of the Merval stock index have had a positive impact on the currency's recent strength. Yet further intervention by the

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