Argentina’s financial markets endured a sharp downturn this week, with the benchmark S&P Merval index falling 5% in local currency terms and 8% when measured in US dollars.
The sell-off was broad-based, extending to the fixed-income market where private debt instruments saw losses of up to 22% on Wall Street.
The peso continued its depreciation trend, rising 1% to reach 1,495 per dollar at the National Bank, marking new highs for 2026.
The peso continued its depreciation trend, rising 1% to reach 1,495 per dollar at the National Bank, marking new highs for 2026.
This currency weakness compounded the losses for foreign investors holding local assets, as the dollar-denominated decline significantly outpaced the local currency drop.
Risk sentiment remained fragile, with the country risk spread holding steady at 437 basis points.
The stability in bond yields suggests that while equity valuations are being aggressively repriced, the fixed-income market has found a temporary equilibrium amid the broader uncertainty.