Argentina’s peso drops to a record low of 1,476 per dollar on Monday despite U.S. intervention

The peso keeps ￰0￱ Monday, it sank by almost 1% in early trading to 1,476 per dollar, hitting a fresh record intraday low before recovering slightly. That’s below the level seen before the ￰1￱ began buying the peso earlier this month , a clear sign that Washington’s support isn’t working ahead of the critical election for libertarian President Javier Milei, who is very close to President ￰2￱ new exchange rate sits right near the bottom of the exchange band Argentina set in April, as shown by data from the Financial ￰3￱ slide has continued despite three separate purchases of pesos by the ￰4￱ since October 9, estimated by local economists at around $400 ￰5￱ government has confirmed that ￰6￱ Trump administration’s latest decision (the $20 billion currency swap line between both countries) has clearly steadied ￰7￱ Central Bank of Argentina confirmed the signing of the swap deal on Monday, though no terms were made ￰8￱ fails to calm markets Milei’s pro-business government has been struggling to calm the chaos that began last month after it lost key local ￰9￱ market selloff hasn’t stopped, and analysts say ￰10￱ led by Treasury Secretary Scott Bessent has done little to slow investors rushing to the ￰11￱ are dumping the peso to protect themselves against a possible devaluation if Milei’s bloc performs poorly in the October 26 midterm legislative ￰12￱ fear Milei may have no choice but to devalue the peso after the vote, given the central bank’s falling ￰13￱ Romano Group, an Argentine economic consultancy, estimates that the bank has less than $5 billion in reserves, excluding liabilities, a dangerously low ￰14￱ Vitelli, the group’s head of research, told reporters the dollar demand “has been very strong and is going to continue that way until we have the election results and more clarity on the exchange rate.” Meanwhile, traders outside Argentina are betting the peso will weaken even ￰15￱ contracts known as non‑deliverable forwards have been pricing in faster depreciation beyond the country’s official ￰16￱ Monday, the two‑month forward rate implied the peso could fall below 1,600 per dollar before year‑end.

Bessent, speaking earlier this month on television, called the peso “undervalued” and said he intended to “buy low and sell high.” His words, though, haven’t lifted ￰17￱ participants continue to test how far authorities are willing to defend the currency amid growing uncertainty and limited reserves. Dollar‑denominated Argentine government bonds showed a small rebound on Monday, but they’re still trading far below the levels reached right after the initial ￰18￱ was ￰19￱ up to Bybit and start trading with $30,050 in welcome gifts