Argentina’s peso fell 5.49 percent against the US dollar this week, closing at 1,467.41 after days of volatility on the currency markets. Markets reacted sharply to the ruling party’s defeat in last weekend’s elections for the Buenos Aires Province legislature. The nation’s currency posted its steepest weekly loss since the devaluation of late 2023, when President Javier Milei took office. Argentina’s US$20-billion agreement with the International Monetary Fund (IMF), signed in April, restricts interventions by the Central Bank while the peso remains below the upper band. August’s inflation index, at 1.9 percent – the same as in July – did little to calm market concerns, with many analysts warning that the peso remains overvalued.