Argentina Markets: Selling Accelerates as Peso Slides, Merval Plunges

Argentina’s financial markets reeled on September 9, 2025, after official sources confirmed the peso’s rapid slide and the stock market’s historic losses. Political turbulence, policy doubts and heavy selling pressured domestic assets throughout the last 24 hours.

The official USD/ARS rate settled at 1,415 by early morning, creeping near multi-decade lows. The “blue” dollar traded at 1,385, narrowing the usual spread to under three percent.

This convergence results from both aggressive intervention in the official market and fragile liquidity in informal channels. The narrow gap signals neither renewed trust in the peso nor economic stabilization as most flows shifted toward hard currency.

The S&P Merval Index closed at 1,732,923.77, sinking 13.25 percent since the previous session. This marks the sharpest drop since March 2020. The market responded to the recent defeat of President Milei’s coalition in Buenos Aires and a parliamentary setback.

These shocks undermined confidence in ongoing reforms and prompted institutional and retail investors to liquidate Argentine equities. Within this sell-off, financials and energy stocks stood out.

Banks like Banco Galicia, BBVA, and Supervielle posted losses over 15 percent each. YPF dropped sharply due to both local selling and the broader retreat from risk.

Telecom Argentina marked one of the lesser losses but still posted declines. Local reports show ETF outflows reached recent highs, reflecting eroded foreign investor sentiment.

Technical analysis based on the daily charts highlights acute distress. The MACD indicator turned decisively negative, showing strong downward momentum.

The Relative Strength Index (RSI) dropped below 37, flashing clear oversold signals. Major moving averages failed as support, with price action collapsing through daily and weekly levels.

Bollinger Bands widened and price hugged the lower band, confirming sustained volatility and selling pressure. The weekly chart also demonstrates that prices failed to reclaim prior resistance zones, casting doubt on a fast recovery.

The yellow Global Liquidity Index NDQ line, a proxy for external liquidity flows, moved erratically and did not support local market stabilization. This aligns with dwindling risk appetite worldwide and capital outflows from emerging markets.

Against regional and EM benchmarks, Argentina underperformed by a wide margin. While Brazil’s Bovespa and Chile’s IPSA moved sideways, the Merval’s losses outpaced all regional peers.

The bond market also flashed distress, with country risk approaching 900 basis points. Overall, the past 24 hours signaled larger market worries about dollar scarcity, weak reserves, and eroded policy credibility.

Capital flight continued at pace, while domestic asset prices hit new lows. The hard data clarify that domestic markets remain fragile, with technical signals and policy realities pointing toward further risks.