Great decline for the currencies of Argentina and Brazil

The Argentinean central bank has used $ 50 million of its reserves for the first time since September to intervene in the foreign exchange market and defend the local currency, the peso, in the face of soaring sales, traders said.

The poor performance of President Mauricio Macri in Monday's first election lowered the peso by 30% yesterday, pointing out that Wall Street feared that the central bank would reduce its reserves with significant sales in dollars.

On the other hand, the cost of insurance of Argentina's sovereign debt against default risk jumped 938 basis points, investors worrying about the South American country's ability to repay his debt after the defeat of Macri in the primaries.

Interbank interest rates jumped in the range of 90% to 120%, compared to 61% on Friday, traders said.

At the same time, the Brazilian real fell sharply yesterday in the early trading session, reaching its lowest level against the US dollar since the end of May, local markets having been hit by the high volatility of the markets and the political uncertainty prevailing in the country. neighboring countries, Argentina. The dollar rose 1.8% to 4.01 riyals, its highest level since May 29th.