Argentine peso halts slide, closes up more than 4pc

18 August, 2019 12:00 AM printer

BUENOS AIRES: Argentina’s peso halted its slide Thursday, closing up more than four percent following three days of sharp declines as President Mauricio Macri grappled with a crushing political defeat.

The rebound, which left the peso at 59.72 to the dollar, came after both Macri and the center-left opposition candidate who trounced him in Sunday’s primaries, Alberto Fernandez, called for calm, reports AFP.

The peso had slipped to 62.18 to the dollar at the close on Wednesday having closed at 46.55 on Friday.

Buenos Aires’ Stock Exchange rose 3.74 percent, after rebounding 10 percent on Tuesday, clawing back some of Monday’s losses when it plummeted 38 percent as the markets reacted to the news of Macri’s shock poll defeat.

Fernandez, now the favorite to unseat Macri in October’s presidential election, said his economic policy did not contemplate a debt default.

On Thursday, Fernandez said he considered an exchange rate of 60 pesos to the dollar as “reasonable” and said it should no longer fluctuate wildly.

Macri suffered a resounding defeat in Sunday’s nationwide primaries, signaling a loss of public confidence in his IMF-backed austerity measures with just months to go before October presidential elections.

Center-right Macri polled just 32 percent of the total votes cast compared to Peronist candidate Fernandez’s 47 percent, leaving the center-left candidate as the overwhelming favorite in the race.