Argentine peso up,bonds dip on JP Morgan sell view

viernes 28 de marzo de 2008 13:38 ART

BUENOS AIRES, March 28 (Reuters) - The Argentine peso rose on Friday, snapping a three-session losing streak, on signs of a possible end to a farmers' strike, but bonds slipped as JP Morgan recommended selling Argentine debt.

Argentine President Cristina Fernandez called for dialogue late on Thursday. Farmers, who are striking nationwide over new export taxes, said they are willing to lift the stoppage only after hearing concrete proposals from the government.

"I'm convinced they will lift the strike ... and talks will get started today," Interior Minister Florencio Randazzo told local television.

In informal trade between foreign exchange houses, as measured by Reuters, the peso ARSB= firmed 0.31 percent to 3.1850/3.1875 per dollar, after three days of weakening because the agriculture strike pinched the supply of dollars to the market.

The peso also strengthened 0.08 percent to 3.1600/3.1625 ARS=RASL in formal interbank trade.

"The market is adjusting to signs of the farmers ending the strike and exports pumping dollars in the market anew," a trader said.

On the other hand, government debt prices <AR/BONOS> fell 0.5 percent on average in early afternoon after JP Morgan (JPM.N: Cotización) recommended late on Thursday to sell Argentine bonds as the farmers' protest lagged on. The losers were led by the dollar-denominated Boden 2014 bond, which shed 1.2 percent.

JP Morgan adjusted its portfolio selling 3 million Bonar bonds maturing in 2011 at $91.50. For details, see [IDn:nN27453765].

Argentine stocks were up in early trade following the bullish trend in external markets.

The benchmark MerVal .MERV index rose 0.34 percent to 2,090 points.

The MerVal mirrored Wall Street's gains as optimism about benign U.S. inflation data and gains in financial stocks overshadowed concerns about consumer sentiment. (Reporting by Jorge Otaola and Walter Bianchi; Writing by Gaspard Sebag, editing by Walker Simon)