Argentine Peso Holds Under Controls as Equities Slide Toward Support

Argentina’s markets opened Thursday under pressure as equities weakened and the peso held steady under tight financial controls.

Official data from BYMA, the Central Bank, BlueDollar.net, the Federal Reserve, and the TradingView charts provided frame the moves. The official wholesale dollar closed at 1,317.84 ARS, while the blue dollar traded at 1,340 ARS, leaving a spread of just 1.7 percent.

This narrow gap has persisted for weeks, an unusual condition in Argentina that underscores the impact of strict regulation, high peso interest rates, and daily liquidity requirements.

The Central Bank confirmed that from August 18 the A3500 reference rate is calculated with same-day quotes, a technical change designed to tighten official pricing.

Financial dollar benchmarks remained aligned. BYMA’s Índice Dólar closed at 1,304.63 and the Índice CCL at 1,308.22, both close to the wholesale rate.

Traders note that carry trades supported by elevated interest rates have kept the financial dollars stable near 1,300 despite fragile sentiment. The Federal Reserve’s nominal broad dollar index closed at 120.76, providing a steady external backdrop.

Equities showed renewed weakness. The S&P Merval closed at 2,081,951, down 0.49 percent, while the BYMA General Index fell 0.69 percent. Banks and energy shares led the losses as investors rotated away from cyclical exposure.

Utilities and telecoms proved more resilient as traders favored defensive positions. The move extended a retreat from July’s highs and reflected stress in short-term funding markets after the Central Bank’s new reserve requirement rules disrupted one-day liquidity.

Technical signals turned negative. On the four-hour Merval chart, price dropped below short-term moving averages, MACD momentum flipped lower, and RSI neared oversold. Candles tested the lower Bollinger Band, showing rising volatility.

On the daily view, the index sits well under its 50- and 100-day averages with a negative MACD histogram and an RSI below neutral. Support rests near 2.08 million points.

A clear break risks a slide toward 2.02–2.05 million, while recovery requires a close above 2.15–2.18 million. Peso charts suggest relative calm. Daily candles hovered between 1,300 and 1,310, RSI eased from overbought, and MACD flattened.

Price still tracks a rising longer-term trendline, pointing to sideways or slightly firmer action unless liquidity conditions change. The yellow global liquidity index plotted on the charts trended lower through August, consistent with tighter global funding.

Winners and losers highlighted the split. The blue dollar gained 1.7 percent, making it the strongest mover, while the Merval shed 0.49 percent and the General Index lost 0.69 percent. The divergence shows a market defending the currency while equities absorb the cost.

Argentina enters Thursday watchful. Sustained narrow spreads suggest firm control of the peso, but weakening equities warn that investors remain defensive.