Argentina investors again braced for a selloff after Economy Minister Sergio Massa did better than forecast in Sunday’s presidential vote, dashing hopes for an outright win by a more market-friendly candidate.
The country’s dollar bonds — already trading below 30 cents on the dollar — look set to tumble further ahead of the Asia market open. The peso is likely to weaken on parallel currency markets used to skirt controls on the expectation Argentines will rush into dollars as the government continues spending policies that are seen stoking inflation already running over 130%.