The Argentine peso fell to a new low on Monday, even as officials signed a $20 billion currency swap agreement with the US.
The rout suggests President Donald Trump’s rare intervention to stem Buenos Aires’ market turmoil has so far faltered.
Trump made further support contingent on Argentine President Javier Milei’s performance in midterm elections on Sunday, heightening anxiety, El País wrote: Investors are hedging against the possibility of a bad outcome for Milei’s party, which would curb his ambitious cost-cutting agenda. Traders “won’t rest easy until they see the election result,” an economist told La Nacion.
Trump is also facing bipartisan opposition at home for bailing out an overseas ideological ally.