April 18, 2008 / 9:24 PM / 12 years ago

Argentine peso recovers, stocks up with Wall Street

BUENOS AIRES, April 18 (Reuters) - The Argentine peso bounced back on Friday after falling a day earlier, due to a greater offer of dollars following a government agreement with farmers to allow more flexibility for meat exports, traders said.

Stocks rose with gains in global markets.

In informal trade between foreign exchange houses, as measured by Reuters, the peso ARSB= appreciated 0.55 percent to 3.2050/3.2075, after hitting an almost six-month low on Thursday.

The peso firmed 0.16 percent to 3.1675/3.1700 per dollar ARS=RASL in formal interbank trade, where the central bank regularly intervenes.

Volume was muted, an exchange broker said, even though the central bank was also selling dollars on the market to satisfy demand and maintain a steady exchange rate.

“The wholesale dollar was in strong demand from private banks out of genuine need, and since it was heading for the cap set by the central bank, the latter sold greenbacks at 3.17 pesos,” said a foreign exchange broker.


The Argentine stock market followed global markets higher on strong U.S. quarterly results, including from Citigroup Inc (C.N), which gave investors hope the credit crisis was nearing an end, traders said.

The benchmark MerVal stock index .MERV rose 1.14 percent to 2,186.47 points.

Gainers were led by shares of food producer Molinos MOL.BA, which rose 3.27 percent to 11 pesos, and index heavyweight Tenaris TENA.BA, the world’s top producer of seamless steel tubes for the oil and natural gas industry, which gained 2.3 percent to 86.75 pesos.

On the broad market, volume swelled to $46 million. Of the active issues, 57 advanced, 25 declined and 14 ended unchanged.

Meanwhile, on the debt market, government bonds <AR/BONOS> rose 0.7 percent on average. Gainers were led by the dollar-denominated Discount bond, which climbed 1.8 percent, and the Bonar 2017 bond also denominated in dollars, which was up 1.3 percent. (Reporting by Jorge Otaola and Walter Bianchi; Writing by Gaspard Sebag; Editing by Leslie Adler)

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