Argentine Peso Weakens as Equities Sink; Dollar Benchmarks Advance

Official data from the Central Bank of Argentina, BYMA, S&P Dow Jones Indices, ICE Data Indices, and market charts confirm that the peso weakened on Monday while equities sold off sharply.

The wholesale peso traded near ARS 1,356 per U.S. dollar on ICE charts, showing the dollar’s advance. BYMA’s dollar-linked indices confirmed the pressure.

The Índice Dólar BYMA rose 2.92% to 1,358.75, and the Índice CCL BYMA gained 3.17% to 1,360.84. The narrow gap between wholesale, MEP, and CCL references reflected compressed spreads, unusual in Argentina’s markets, even as the peso lost value.

Equities faced heavy selling. The S&P Merval fell 4.00% to 2,021,852.01, while the broader S&P/BYMA Índice General dropped 4.11%. Argentina underperformed regional peers: Mexico’s S&P/BMV IPC stood at 58,492.13, a far smaller drawdown, underscoring weaker sentiment in Buenos Aires.

Top five winners came from selective names that bucked the downtrend. Sociedad Comercial del Plata gained 9.33%, Pampa Energía rose 5.03%, BYMA advanced 3.35%, Grupo Financiero Galicia added 3.17%, and Agrometal climbed 2.02%.

These moves showed investors selectively seeking liquidity and defensives despite the broader selloff. Top five losers included major names hit hardest by risk reduction.

YPF declined 6.7%, Banco Macro lost 6.2%, Transportadora de Gas del Sur fell 6.0%, Edenor shed 5.9%, and Loma Negra retreated 5.4%.

Losses clustered in energy, banking, and utilities, reflecting broad skepticism toward sectors tied to domestic demand and regulation. Technical signals confirm the peso’s weakness.

On the USD/ARS daily chart, price trades at the upper Bollinger Band, RSI nears 70, and MACD stays positive. These readings indicate strong dollar momentum, with first support near the 20-day moving average.

Argentina Markets Face Dollar Strength Amid Equity Weakness

The Merval’s daily chart shows price below its 20- and 50-day moving averages, RSI near 35, and a negative MACD. Sellers hold control.

On the four-hour chart, RSI sits near 30 with a moderating negative MACD histogram, suggesting only temporary bounce potential before the dominant downtrend resumes.

The Global Liquidity Index NDQ on the supplied charts declined into late August. That line’s fall coincided with a rising USD/ARS and sinking equities, reinforcing the interpretation of tighter liquidity and stronger demand for dollars.

In summary, the peso weakened as official dollar indices advanced, equity benchmarks fell, and investors concentrated gains in a handful of defensive or liquidity-driven stocks.

With the ICE U.S. Dollar Index framing global conditions, Argentina’s local picture remains one of dollar strength, equity weakness, and compressed but fragile FX spreads.