Argentina’s benchmark S&P Merval index dropped 2.4% over the trading week, weighed down by negative sentiment from Wall Street and escalating geopolitical risks in the Middle East.
The sell-off coincided with a rise in the country’s risk premium, which climbed to 419 basis points as investors priced in heightened uncertainty following the resumption of hostilities between the United States and Iran.
154 billion in purchases during the week, aiming to reinforce its reserve position and stabilize the currency amid the broader regional volatility.
The Central Bank of Argentina (BCRA) responded to the market turbulence by accelerating its intervention in the foreign exchange market.
The monetary authority absorbed USD 1.154 billion in purchases during the week, aiming to reinforce its reserve position and stabilize the currency amid the broader regional volatility.
This aggressive buying stance follows a period of thin liquidity that had previously seen modest gains in dollar-denominated bonds.
The sharp decline in equities marks a reversal from the previous session, where the Merval had climbed 1.2% on Friday amid cautious optimism.