BUENOS AIRES, Oct 29 (Reuters) - Argentina’s peso recovered after a steep fall in early trade on Wednesday, as the central bank stepped in and offered to sell $1 billion in dollars on the foreign exchange market, traders said.
In formal trade between banks the peso was trading at 3.3550/3.3650 per dollar ARS=RASL, after weakening to 3.41 in early trade as businesses snapped up dollars that are seen as a safe haven in Argentina, where markets have been tremendously volatile this month.
In informal trade between foreign exchange houses, as measured by Reuters, the peso changed hands at 3.4000/3.4200 recovering from a slide to 3.46 per dollar in early trades ARSB=.
On Tuesday, the peso had slipped 2.12 percent to 3.3750/3.3700 ARS=RASL in interbank market, its weakest close since an economic crisis and devaluation in 2002, while the peso in informal trade shed 1.62 percent at 3.445/3.45.
In credit markets on Wednesday, prices for sovereign bonds traded locally fell an average 0.20 percent, in an eleventh consecutive session of losses.
The peso remained under pressure due to investor concern over a government bid to take over private pension funds and more general jitters over the Argentine economy. The government has asked the funds to stop selling pesos and sovereign debt.
Congress is debating the president’s pension nationalization bill. (Reporting by Walter Bianchi; Writing by Helen Popper, Editing by Walker Simon)