US Treasury Secretary Scott Bessent’s record as a powerful pacifier of unruly markets is now being put to the test in Argentina, where investors are questioning the value of his pledge of support last week for President Javier Milei.
Barely a week after Argentine assets surged on a vow from Bessent to provide “all options for stabilisation,” traders Tuesday drove the Argentine peso down over six percent against the dollar – forcing Milei’s government to intervene and stem the plunge, only for it to fall again Wednesday and prompt further dollar sales by officials. The capacity of Buenos Aires to keep up such efforts on its own is limited by its lean foreign exchange reserves, putting a spotlight on what Washington is prepared to do.
“There’s a sentiment things can’t hold at this pace,” said Hans Humes, the chairman of Greylock Capital Management, who has more than three decades of experience with emerging markets.
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