Argentine dollar extends rebound, stocks fall up to 5% on Wall Street

Argentina's official dollar exchange rate continued its upward trajectory on Tuesday, marking a $20 increase in the retail rate within the first two days of June. This rise occurs as Argentine stocks face declines on both Wall Street and the local market, impacted by global uncertainty surrounding the Middle East conflict.

The retail dollar price rose by $5 at Banco Nación, reaching $1450 for selling, while the average price across other banks hovered around $1451.12. The wholesale dollar remained stable at $1426.40, nearly 20% below the upper limit of the currency band. Financial dollars also saw slight increases, with the MEP dollar rising to $1447.25 and the "contado con liquidación" (CCL) reaching $1501.08, creating a $3.50 gap with the official rate.

Financial analyst Christian Buteler described the dollar's movement as "normal," anticipating a slight recovery due to falling interest rates and rising general economic prices. He noted that current flows, including expected agricultural sector liquidations, should keep the dollar stable in the coming weeks.

In New York, Argentine stocks (ADRs) largely traded in negative territory, with Globant, Loma Negra, and Mercado Libre showing the most significant drops. The Merval index in Buenos Aires also retreated 1.5%. Economists attributed the global market downturn to tensions between the United States and Iran, which affected Argentine assets. Some analysts also pointed to profit-taking as a factor in the stock market's performance.