FX.co ★ Argentina Peso Strengthens Past 1,400 Despite Global Turmoil

Argentina’s peso has strengthened beyond 1,400 per US dollar, even as the war involving Iran rattles global markets. It was one of only two emerging‑market currencies to appreciate against the dollar in March, defying a broad selloff across developing‑world FX. After more than a decade of persistent weakness, the turnaround is being driven by robust agricultural exports, rising energy shipments from the Vaca Muerta shale basin, and increased dollar borrowing by local companies, including a series of recent international bond issues. Seasonal harvest inflows and elevated commodity prices are lifting export earnings, pushing Argentina’s trade surplus sharply higher early in the year. Strict capital controls are also curbing speculative outflows, tying the peso more closely to underlying trade flows. Further support comes from renewed access to global capital markets, which is helping the central bank rebuild foreign‑exchange reserves. Still, risks remain: inflation is stubbornly high and sovereign bond spreads are widening, casting doubt on how long the peso’s newfound strength can be sustained.