Exchange rate heats up to close August. Is Milei changing strategies?

The Buenos Aires Herald reports that Argentina's wholesale dollar closed the week at an all-time high in nominal terms, ending at one thousand five hundred twelve pesos after touching one thousand five hundred fourteen during the week. The government had been intervening whenever the currency neared the one thousand five hundred mark, seen as a psychological barrier, but this week marked the first time in nearly a month that the wholesale dollar stayed above that level for all five trading days. So far in August, the wholesale dollar has risen one point seven percent, with most of that gain in the last week. Economists are split on what's next. Federico Glustein expects tension in September, pushing the dollar to a range between one thousand five hundred fifty and one thousand four hundred seventy pesos, citing low peso liquidity and seasonal lack of agricultural exports. Joaquín Alvarado of consulting firm ACM notes that agricultural revenue tends to decline in September, but says authorities seem to want to avoid big swings. Meanwhile, brokerage Delphos Investment argues the most challenging months are over, pointing to a surge in truck deliveries to Rosario and reduced profit remittances. The Treasury still has tools like futures market intervention to contain pressure, the report says.

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