Argentina’s central bank said it bought US$ 50 million at an average price of 37.597 Pesos per dollar in the foreign exchange market on Tuesday, part of its effort to maintain the currency in a trading band agreed with the International Monetary Fund.
The currency nonetheless appreciated 1.33% after the intervention to 37.50 to the dollar. The bank has intervened in recent days when the Peso strengthened outside the band, which was at 37.643 to 48.714 per greenback on Tuesday.
Hit by jitters about Argentina’s ability to meet its debt obligations, the Peso lost half its value against the dollar last year. The central bank adopted a super-tight monetary policy late last year that boosted the currency.
This month the strengthening Peso started slipping outside the limits of the non-intervention band agreed with the IMF.