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Volatility returned, but the dollar was stable



On the day of greater volatility, the peso was now accompanied by fluctuations in regional currencies and the retail exchange rate, which stabilized at USD 46.16 in the average for Buenosairean banks. Meanwhile, the wholesale dollar increased by 3 cents to $ 45 after the initial increase of more than 1%. The size of the operation was maintained at a high level, agreeing to US $ 829 million.

"Thanks to the good route and new volatility, the North American currency closed very close to the end of yesterday in the circle, which also had external volatility," said Gustavo Quintana, operator of PR Corredores de Cambio. The price of the currency fluctuated between the minimum values ​​of 44.95 USD and the maximum of USD 45.50.

Fernando Izzo from ABC Mercado de Cambios stressed that "the dollar index against the most important basket of currencies had a stability close to 97.35%, with a slight increase of 0.03% per day, and also caused emerging currencies, with the exception of Brazil (which was on par with devaluation by 1% in advance), recorded a slight improvement. "

At the liquidity listings auction (Leliq), the central bank spent USD 19,900,000 and maintained its average rate at 71.6%. Thus, the number of eight consecutive drops in the reference interest rate was reduced from the record level of 74.1% achieved on May 2. Analysts warn that the interest rate will remain very high.

"With high prices and wages, companies and families need more and more pesos to finance a certain level of transactions." The increase in nominal demand for pesos (despite the decline in real demand) is beginning to put pressure on low rates, "says Martín Vauthier, Eco Go's director.

Monetary authorities also sold $ 60 million a day to the Treasury, which the government agreed with the IMF.

In the meantime, investors expect that direct sales of units within the exchange band, previously prohibited and now guaranteed by the IMF, will start in the coming weeks. Will pre-election dollar be important until June, stimulated by entering final lists of candidates and important maturities, such as a double bond, which the Treasury wants to decompress with the help of the new Lelink linked to the exchange rate that is between today and tomorrow

These items will be added to the high CPI for April, which will be announced by Indec in minutes; to financial tensions that keep the risk above 900 basis points and the political weakness of the government.


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