Argentina's country risk premium surged to 2.1% on Tuesday, signaling a sharp deterioration in investor sentiment as both equities and sovereign debt faced heavy selling pressure.
The benchmark S&P Merval index dropped more than 3%, while government bonds fell an average of 2%, marking a significant reversal from the modest gains recorded in recent sessions.
Authorities purchased US$ 28 million in dollars, a move aimed at keeping the blue dollar rate stable and preventing a broader currency crisis.
The selloff occurred despite the central bank's intervention in the foreign exchange market.
Authorities purchased US$ 28 million in dollars, a move aimed at keeping the blue dollar rate stable and preventing a broader currency crisis.
However, the intervention was insufficient to halt the broader risk-off mood among local and international investors.
This volatility follows a period of cautious optimism, with the S&P Merval index having fallen 0.4% the previous day after a small dollar-denominated gain.