With a little more supply, the dollar stabilizes below 40 pesos

After adding Six changes on the retail marketand five at the wholesaler, the dollar it stabilizes this tuesday slightly less than 40 pesos and 39 pesos, respectively, in both segments.

The agents of the Exchange Square recognize that all around the 39 pesos the interbank supply is a bit more nurtured and eliminates the upward pressure, then a rebound of more than 8% of the exchange rate since last week.

In the proemdio of the banks of the porteño microcentre the dollar is offered at $ 39.82 for sale, with a drop of 15 cents.

In the market wholesaler sells for $ 38.78about 27 cents under the previous fence.

"The the exchange rate has always remained in the "no-intervention zone", the central bank did not participate in the foreign exchange market and only made direct sales to the Treasury National, which used the funds thus obtained to deal with different foreign currency bonds, "said the monetary entity in its latest release. Foreign exchange balance.

The BCRA has established for Tuesday the lower limit of the free floating band of the dollar $ 35,929, while the "ceiling" of the band amounted to 46,496 pesos.

Since mid-November the dollar expanded the appreciationin front of a company position statement by cover portfolios among institutional investors, with insufficient supply and a flow of pesos weighing on the rise in the exchange rate, after the partial renewal of LEBAC last week.

More pesos in the hands of investors, reference rate in progressive decline and the closing of positions towards the end of the year boosted the US currency. price from early Octoberin a move that also anticipated the strong liquidity provided by the payment of wages, half Christmas bonuses and December bonuses.

"As variables to follow closely will remain, basically – and as it has been for weeks – the Dollar evolution and interest rates. This in a setting where there are good signs: the Inflation gives way recent summits, the Current account deficit accelerates its correction and the prosecutor seems very likely to exceed the target and, therefore, brings us closer to balance in 2019, "he said. Matías Roig, director of Portfolio Personal Inversiones. "Against, but waited, the the business continues to show a strong recession", he said.

For the economist Gustavo Ber, the dollar's bullish reaction was due to "a greater demand for coverage has prevailed as a result of internal and external uncertainties. Added to this is the trend of BCRA rate reduction and the depreciation of many emerging currencies, which anticipate and accelerate the dollarization process portfolios in front of electoral risk of 2019"

From Search for traders that "the wholesale exchange rate evolves parallel to that of the retailer and to the movement that others coins of the region"in an upward momentum" for purchases to cover end-of-month bonds and the disarmament carry trade"