Argentina Sets Floor Under Peso as Reserves Dwindle

Argentina’s central bank is setting a price floor under the volatile peso in hopes to avoid a sharp plunge in the currency after an opposition-won presidential election last Sunday shifted the country firmly back to the left, Reuters reported. The peso edged up on Thursday to 59.68 per dollar, with the central bank offering U.S. currency in the exchange market at a fixed 59.99 pesos per greenback, effectively putting a floor on the trade. Argentina’s markets have been held in limbo following a general election on Sunday, as traders and investors await signals from President-elect Alberto Fernandez about the future direction of Latin America’s no. 3 economy. A spokesman for the center-left Peronist leader said he would travel to Mexico on Friday and return in the middle of the following week, his first trip overseas since being elected. Read more

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