Economy / Argentina
If you would like to subscribe to Southern Cone Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Southern Cone Monitor please click on the trial link below.
Peso's January Blues Unlikely To Last
January 2007 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Southern Cone Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Southern Cone Monitor please click on the trial link below.
Since Christmas last year the Argentine peso has shown a rather surprising amount of short-term weakness. After hitting ARS3.0512/US$ on December 22, the decline began four days later with a 0.6% daily depreciation, and has continued in this direction, reaching ARS3.1100/US$ during yesterday's trading, the lowest rate since Spring 2003. Interestingly, the currency weakness has come at a time when headline indicators suggest a healthy economic climate. GDP growth measured 8.5% y-o-y in the first 11 months of the year, the full-2006 trade surplus expanded over 6% to hit US$12.41bn, and end-year CPI fell into single figures (9.8%) for the