Argentina's Floating Peso a Respite From Emerging-Market Carnage
- Foreign traders reluctant to return before deal with holdouts
- After years of isolation, transition has been gradual
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A month after President Mauricio Macri removed currency controls as part of an effort to end Argentina’s decade of exclusion from international capital markets, the peso continues to trade in splendid isolation from its peers.
The peso fell 27 percent on its first day of freedom last month yet since then has weakened just 2.2 percent. The currency is no more correlated to the rest of emerging markets than it was in November, when the central bank managed daily moves, data compiled by Bloomberg show. It fell 0.7 percent on Friday, while a broad gauge of emerging-market currencies gained 0.9 percent.