Argentina was hit with another wave of economic turmoil today, as key indicators revealed the extent of doubts about Mauricio Macri's chances of winning re-election in October's presidential election.
In movements closely watched by both the markets and citizens, the dollar rose to 44.92 pesos per greenback, just four cents under its historical high (registered April 5), according to Central Bank data. Meanwhile, country risk rose to a whopping 945 points, a record under the Macri adminstration's time in office, reflecting doubts about the identity of Argentina's next president.
According to economist Damián Di Pace, the troubling data is a result of uncertainties held by bondholders, who are now doubting Argentina's ability to pay off its debt after the elections, should Macri's most likely rival, former president Cristina Fernández de Kirchner, win the presidential vote.
Speaking this afternoon, the president said the fears needed to be countered by his re-election in October.
"It clearly seems the election is slipping away from Macri," said Alberto Ramos, head of Latin America research at Goldman Sachs told Bloomberg earlier today. "There’s increasingly less guarantee that policy continuity will be maintained after the election, and that makes markets nervous."