Argentine Peso Falls Despite US Bailout

The Argentine peso has fallen below the level it reached before the US Treasury began purchases earlier this month, in a sign that the Trump administration’s financial support is failing to halt the currency’s slide ahead of a crucial election for libertarian president Javier Milei.

The slide has resumed despite three purchases of pesos by the US Treasury since October 9 — which Argentine economists estimate total roughly $400mn, although neither government has confirmed the figure — as well as the announcement of a $20bn currency swap line between the two countries.

Milei’s pro-business government has struggled to end severe market turmoil that began last month after it suffered defeat in key local elections. Analysts say US support, led by Treasury secretary Scott Bessent, has failed to quell demand for dollars from Argentine investors who are hedging against the possibility of a bad result for Milei at critical midterm legislative elections on October 26.

Dollar-denominated Argentine government bonds strengthened slightly on Monday. But they remain well below the prices hit immediately after the initial US intervention to prop up Argentina’s currency was announced.