Official Dollar Hits $1500 in Some Argentine Banks Amid Rising Trend

Argentina's official dollar exchange rate continues its upward trend, hitting $1500 in some banks and marking a significant increase for June.

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Demand is reactivating and the flow of financial dollars would be waning.

The retail official dollar closed at $1495 for sale at Banco Nación, reflecting a $5 increase. The average price across banks hovers around $1495.90, with some institutions, like Supervielle, offering it at $1506. The wholesale dollar rate has also climbed, adding $7.96 to reach $1478.75, accumulating a 4.5% rise in June and nearing levels last seen six months ago. This rise is compressing the gap between the official rate and the upper limit of the currency band to 17%.

Meanwhile, the parallel "blue" dollar is also trending upward, trading at $1520 for sale in Buenos Aires' City, a $15 increase from the previous day and just $10 shy of its all-time nominal record. Financial dollar rates, such as the MEP and CCL, are trading more stably, at $1503.03 and $1551.70, respectively.

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At the international level, the dollar is strengthening, driven by the expectation that the Fed will raise interest rates.

Analysts point to several factors driving the pressure on the dollar. Martín Polo, head of strategy at Cohen Aliados Financieros, observed that local dollar demand is reactivating while financial dollar flows may be diminishing. He also noted that the international dollar is strengthening, fueled by expectations that the U.S. Federal Reserve might raise interest rates. Fernando Marull, a partner at FyA, concurred, highlighting increased demand while the supply in the exchange market remains stable. Fernando Camusso, director at Rafaela Capital, believes the exchange rate is "lagging" and will continue to adjust gradually throughout the second half of the year.

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The exchange rate is lagging and will continue to adjust.