Investors await policy package plan to save Argentine peso

The rand and the other currencies have lost significant ground lately due to a number of factors.

FILE: Argentine President Mauricio Macri. Picture: AFP

JOHANNESBURG - Argentina is set to announce a policy package on Monday in an effort to help the peso, the latest emerging market currency to come under pressure.

The rand and the other currencies have lost significant ground lately, due to a number of factors.

Traders say the peso battled last week, due to concerns over the country's deficit, with the rand suffering collateral damage as a result.

Economists say that the peso came under pressure on Wednesday and Thursday after President Mauricio Macri said he would ask the International Monetary Fund to advance disbursements under a $50 billion financing deal.

Traders say this raised the alarm among investors that Argentina may be hard-pressed to fund its 2019 deficit.

But the country's beleaguered peso stabilised on Friday after the central bank said it would auction a large amount of dollar reserves.

With an announcement today, investors are looking for signs that the government will unveil a fiscal package austere enough to calm the markets.

(Edited by Shimoney Regter)