Argentine FX Traders Estimate US Treasury Sold Over $200 Million

Core Insights - The US Treasury has significantly increased its purchases of Argentine pesos, marking the highest volume in a single session as the currency continues to depreciate despite US support [1][2] - Secretary Scott Bessent disclosed that over $200 million in pesos were sold during the trading session, with a substantial portion occurring in the last 10 minutes [2] - The US Treasury is actively monitoring the situation and has the capacity to intervene to stabilize the Argentine market ahead of the upcoming midterm elections [3][4] Market Dynamics - The Argentine peso has depreciated approximately 30% this year, with a notable drop of up to 5.2% intraday on Friday, closing around 1,450 pesos per dollar [5] - The parallel exchange rate, known as the "blue-chip swap," has also weakened, reflecting ongoing market instability [3][5] - In addition to peso purchases, the US is offering a $20 billion currency swap line and facilitating private lending of the same amount to bolster Argentina's financial stability [4]