Earlier this week, the Argentinian peso
plunged 20 percent.
AISC between $935/oz and $995/oz, assuming average exchange rates against the US Dollar of ZAR 14.00 (South African Rand), BRL 3.65(Brazilian Real), AUD 0.75 (Australian Dollar) and AP 40.00 (Argentinian Peso
), with the Brent crude oil price at $74/bl average for the year; and
The currency effect was negative -1.2 points mainly linked to the devaluation of the Argentinian peso
and the Turkish lira.
For Oxford Economics, 'despite significant adjustments since last year, the Argentinian peso
and Turkish lira are still the two currencies most vulnerable to a renewed downturn in market sentiment.'
For example, the Turkish lira and Argentinian peso
have collapsed 41 percent and 91 percent, respectively, in 2018.
the third quarter 2017, including: a negative currency impact (-5.2%) driven mainly by the appreciation of the euro against the Argentinian peso
,Turkish lira and Brazilian real, which all depreciated by more than 20% in the quarter against last year; changes in scope of consolidation (-0.5%), resulting entirely from the disposal of Stonyfield in August 2017.
Hussein Sayed, chief market strategist at FXTM, said traders are waiting to see whether Emerging Market (EM) currencies -- namely the Turkish lira, Argentinian peso
, Indian rupee, and Russian ruble -- will stabilise or not.
As the Argentinian peso
is down more than 50% so far this year, the currency crisis is driving the country deeper into a recession.
Meanwhile, another research note issued by London-based Capital Economics said that the Argentinian peso
and Turkish lira came under fire this month, prompting policymakers in both countries to aggressively hike interest rates.
He had pegged the Argentinian peso
at one-one to the American dollar.
The Argentinian central bank was forced to raise interest rates dramatically (up 17 percentage points since May 2013) as FX reserves evaporated, forcing a devaluation of the Argentinian Peso
in January 2014.
The ungluing became serious when the Argentinian peso
crashed over 15% against the dollar in one session.