The blue dollar reduced last -day gains and dropped to $ 208

After rising seven pesos yesterday, at what was the largest increase in a day this year, the blue dollar turned this wheel and rearranged to $ 2084.5 pesos below the previous closing.

In just one week the informal rose by 17 pesos.

In the case of financial dollars, they started higher but after noon they started falling. MEP, which trades on the Buenos Aires Stock Exchange, dropped 1.5%, at $ 207.7. While cash with liquidity, the operation to take foreign currency abroad, will yield 2.2%, in $ 209.5. Within ten days the CCL climbed by 25 pesos, up 13%.

Rising inflation, rising public spending and falling value of regional currencies come together to put pressure on the foreign exchange market, which until 10 days ago had been calm for several weeks.

angIn this context, investment funds aim to leave emerging markets to seek safer positions amid strengthening the dollar and tightening Federal Reserve policies. At the local level, funds use liquid cash to come out and it pushes up the price, which in turn marks a bullish course for the blue.

The difficulty of the Central Bank to add reserves is also affecting the market. Just three rounds before the end of the month, the financial authority barely accumulated purchases $ 220 millionagainst the US $ 3,000 million it pocketed in the same month last year.

little reserve

“The absence of new Central Bank reserves continues to put pressure on their prices, marking devaluations of 10.4% and 12% – respectively – in the last 5 days”, they pointed out from the Cohen Group.

“The sudden rise in the exchange rate is not surprising due to monetary fundamentals. The difference between the Broad Monetary Base (the sum of the Monetary Base and Remunerated Liabilities of the BCRA) and the evolution of the CCL, which has almost progressed in tandem since it was assumed by Alberto Fernández, this is an important fact to keep track of.As usually happens in these cases, the descent is “by stairs” and the ascent is “by elevator”, which reinforces the idea that timing is the everything in carry trade ”, indicate from Portfolio Personal Investments (PPI).

“Despite the recent increase in CCL, the Broad Monetary Base is still 10.7%“ leading ”in the exchange rate, so can have a tour the free financial dollar‘, says PPI.

At the opening of the session, the stocks also seemed to find a halt after falling in recent days. Now Merval is up 1.1% and in New York, Argentine stocks were alternately up and down. The highlight was the rebound of Ternium which rose 7% after presenting the balance with a positive result.

Argentine bonds also stopped declining and rose 0.5% on the tire average. Even, accumulated fall of more than 10% so far this year. The Monetary Fund agreement does not fully clarify market doubts and the titles continue to decline, as the country’s risk rises by 1.4%, to 1781 basis points.

AQ