Argentina’s peso tumbled for a second day, as investors remain jittery about the country’s political future and the return of populist policies after incumbent president Mauricio Macri lost decisively in the primary elections over the weekend.
The peso slid 7.4 per cent to 57.1 pesos per dollar. Tuesday’s drop comes after the country’s currency lost more than a fifth of its value at one point during hectic trading in the previous session.
Yields on the government’s bonds jumped as well, with one maturing in 2028 rising 1.73 percentage points to 16.8 per cent. The yield on the country’s shorter-dated debt remained near distressed levels. Yields rise when prices fall.
The sell-off continued despite assurances from Peronist candidate Alberto Fernández, who won in the primaries, that he does not want to default on the country’s debt.