MercoPress. South Atlantic News Agency

Global volatility hits Argentine assets as country risk edges back toward 600 points

In the local market, the S&P Merval fell 2% in peso terms and 2.8% in dollars

Argentine assets ended the week under pressure, pulled lower by international volatility linked to the Middle East war, in a session marked by falling stocks and bonds, a higher country risk index and renewed oil-driven pressure on inflation and financial expectations. Brent crude settled at $103.14 a barrel, while Wall Street extended its weekly losses amid concern over global energy supply.

In the local market, the S&P Merval fell 2% in peso terms and 2.8% in dollars, with losses of as much as 6% among leading shares. Argentine ADRs in New York also traded lower, in line with declines across the main U.S. indexes and a broader global move toward defensive positions.

Sovereign bonds also weakened and the country risk index climbed back to 584 basis points, moving once again close to the 600 threshold. The move reflected a mix of external pressure — higher risk aversion and rising oil prices — and the continued fragility of Argentine debt prices.

Oil remained the clearest gauge of global stress. The conflict with Iran pushed Brent back above $100, while the benchmark settled Friday at $103.14 and posted a double-digit weekly gain. For an economy like Argentina’s, which remains exposed to higher refined fuel costs, that jump adds pressure on pump prices, inflation and interest-rate expectations.

On the currency front, the wholesale peso closed at ARS 1,400 per dollar, with a modest daily increase but a lower level over the week as a whole. In the retail segment, Banco Nación listed the dollar at ARS 1,420 for sale at the close. The move came as the central bank again ended the day as a net buyer in the official market.

The central bank bought $45 million on Friday, taking its 2026 purchases to around $3.298 billion, although gross reserves ended the week at $45.659 billion, down $109 million on the day. That combination shows the monetary authority is still absorbing foreign currency, but not fully offsetting the accounting erosion caused by changes in external asset prices and other financial factors.

The result leaves Argentina more exposed to an adverse international backdrop just as the government tries to consolidate disinflation and stabilize the exchange market. With oil higher, Wall Street lower and country risk rising again, the sensitivity of local assets to the external front was once more on display.