Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
On Instagram and other social media sites, health misinformation is rampant. Companies have only recently begun to take steps to clamp down on this kind of content.Technologyread more
A federal judge cited new evidence of potential terrorism sympathies Wednesday in denying bail for a longtime mechanic charged with sabotaging an American Airlines jetliner...Transportationread more
revamp loom@ (Adds peso closing level, election campaign context from pollsters)
BUENOS AIRES, Sept 9 (Reuters) - Argentina's peso was nearly unchanged on Monday as capital controls pulled the market out of last month's tailspin when a populist-leaning presidential candidate thumped the business-friendly incumbent in the country's primary election.
The currency edged 0.36% lower to 56.02 per dollar, having risen last week after the government clamped down on access to and overseas transfer of greenbacks. The measures, aimed at ending a run on the peso, were taken on Sept. 1 after the currency lost about a quarter of its value in August.
"In the short term, the capital controls are working, and should continue to work for some months," Gabriel Zelpo, an analyst with Buenos Aires consultancy Seido, said in a telephone interview.
Over the longer term, the inflation-and recession-stricken economy faces a host of uncertainties as presidential challenger Alberto Fernandez marches toward an expected win in the Oct. 27 general election over business-friendly incumbent Mauricio Macri, whose re-election bid has stumbled along with the economy.
Parties had already chosen their candidates before the Aug. 11 primary, turning the vote into a grand survey of voter tendencies. Pollsters, having failed to forecast Fernandez's 16-point shellacking of Macri in primary, now expect him to beat the incumbent by a landslide in October.
Analysts have increased their 2019 inflation forecasts to 55%, with consumer prices rising in step with the peso's collapse. The economy is now expected to shrink 2.5% this year.
Country risk fell below 2,000 basis points on Monday for the first time since Aug. 27, according to JP Morgan's Emerging Markets Bond Index Plus. But questions remain about Argentine creditworthiness since the administration said last month it would extend maturities on about $100 billion of debt.
The debt "reprofiling" and capital controls were major setbacks for Macri's free-markets reform effort. He took office in late 2015 promising to use orthodox economics to end the cyclical crises that have hobbled Argentina over recent decades.
His popularity was high during the first half of his term. But voters ended up rebelling against his fiscal belt-tightening program under a $57 billion International Monetary Fund loan deal which included subsidy cuts that triggered big increases in household power and heating gas bills.
Macri negotiated the IMF pact last year, when a previous run on the peso sparked jitters about the government's ability to honor its dollar-denominated bonds.
(Reporting by Hugh Bronstein, Walter Bianchi, Gabriel Burin, Eliana Raszewski and Marina Lammertyn; Editing by Richard Chang)