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Concern Over Macri Future Hits Argentina Markets Again, Peso Down 4%

Reuters

   BUENOS AIRES - Argentina's peso closed weaker again on Tuesday
   following a second day of market turmoil triggered by opposition
   candidate Alberto Fernandez's landslide victory in a primary election
   that dealt a severe blow to President Mauricio Macri's re-election
   chances.

   The peso closed 4.29% lower at 55.9 per U.S. dollar after touching 59
   to the dollar earlier. The currency had hit an all-time low on Monday
   of 65 to the dollar, a drop of 30%, on fears that a Fernandez
   government could take Argentina back to interventionist economic
   policies.

   The central bank has sold a total $255 million of its own reserves
   since Monday in an effort to help steady the currency.

   "The market thinks Fernandez will likely default and impose capital
   controls and renegotiate with the IMF. In a nutshell, the market thinks
   Fernandez is the return of populism," said Claudio Irigoyen of Bank of
   America Merrill Lynch (BAML).

   Fernandez, who has former President Cristina Fernandez as his running
   mate, pulled off a stunning upset in the primary with a
   wider-than-expected 15-point lead over Macri, a free market proponent.

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