The dollar again exceeded $ 46 due to global instability (and another rate cut)

The greenback soared 50 cents to $ 46.26, without the intervention of the BCRA, which confirmed again slight decline in the reference rate, in a round marked by the auction of Treasury bills in dollars (Letes) and letters capitalized in pesos (Lecap).

On the single market and the foreign exchange market (MULC), by contrast, the currency rose 68 cents to 45.33 dollars, in tune with world markets, mainly emerging countries, faced with increasing risk aversion after Washington stepped up pressure on Beijing to reach a desired trade deal.

In a wheel with moderate business volume (only US $ 669.1 million, 10% lower than Monday), the US currency has been coupled with more intensity to international nervousness and adjusted its price with a magnitude greater than the lukewarm rise of Monday.

From the beginning, the demand for hedging stimulated the advance of the quotation, until the offer was present with a revenue stream (something from the agricultural sector, plus the 60 million US dollars that the BCRA launches every day a call for tenders on behalf of the Treasury) It has reduced the initial hike and the big dollar touched the lows of the day by $ 44.80, badyst Gustavo Quintana explained.

From there, the orders intensified with greater intensity during the last half hour of operation and in the face of insufficient supply (agricultural revenues lower than those of the previous day, in the face of falling commodity prices), They overflowed the roof of the $ 45, until reaching a maximum of $ 45.33, just at the end of the wheel.

"A dollar order form appeared one hour before the market closed and raised the price", commented Fernando Izzo of ABC Mercado de Cambios.

The truth is that "the likelihood of an escalation of the trade war between the US and China has increased dramatically, which would be an obstacle to their respective economies, especially China."said Louis Kuijs, an economist at Oxford.

In this context, the Chinese yuan remained close to the minimum of two and a half months in international markets.

Emerging The Turkish lira faced strong pressure after the country's electoral council decided to cancel a municipal election in Istanbul and order its re-election.

Thus, the Turkish currency fell to 1.5% and exceeded the threshold of 6.15 units per dollar, which also resulted in the fall of the Istanbul stock market and government bonds, pushing the rest of the emerging currencies.

Low rate

The central bank validated Tuesday the third consecutive loss in Leliq rates, which averaged 73.242%, for an allotment of $ 215.203 million.

The interest rate on letters from the BCRA narrowed by only 29 basis points, after two bids that had a contractionary effect of $ 8,104 million.

On the first trading day of the day, the Central Bank granted seven-day liquidity letters at an average audience rate of 73.340%, for an amount of $ 138,092 million.

At the second auction, the amount allocated was $ 77,112 million, at an average trial rate of 73,066%, with a maximum rate of 73.19% and a minimum of 72.932%.

Other markets

In the informal market, the blue dropped 50 cents to $ 46, According to the study of this media in Buenos Aires, the microcentro caves have been closed under the official citation. Meanwhile, the "contado con liqui" rebounded 27 cents yesterday to $ 44.93.

In the interbank money market, call money operated at 71%.

In the ROFEX futures market, $ 812 million was traded, 35% lower than Monday. The shortest terms concentrated more than 65% of the total mined, and the final prices for these months, May and June, finally worked out at $ 47.19 and $ 49.10 (62.40% and 56.22% ). October, with 51 million US dollars operated, finished at 58.30 dollars (TNA 60.76%).

Although the BCRA's sales positions were close to the end, they did not affect the final price (they seemed to show their willingness to stop the rise). In this context, all conditions increased on average by more than 1.2%, which was consecutive to the final increase of the spot.

Finally, BCRA's gross international reserves fell from US $ 1,926 million on Tuesday to US $ 68,926 million.