Rush of Farm Dollars Fails to Lift Argentine Peso Ahead of Vote

Peso traders were expecting the Argentine currency to strengthen as soybean exporters exchanged record amounts of dollars after selling their harvest. Instead, the opposite happened: The peso, which has been weakening against the US currency since April, slid another 4%.

Three months after President Javier Milei lifted Argentina’s currency controls, early investor optimism has given way to growing caution. With midterm elections looming in October and mounting concerns over the country’s current account deficit, many are now hedging against a potential decline in the peso and other local assets, including JPMorgan, which started unwinding its position in Argentine peso-denominated Treasury notes.