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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (1602)	5/20/1999 10:48:00 AM
From: Paul Berliner	Read Replies (1) \| Respond to of 3536

I think the board will float the Argentine Peso, but the reaction will be positive - I would not expect competitive devaluations in the wake of an Argentine float, and I doubt the street does either - thus, markets will showcase a 'relief' rally as in Brazil, though for different reasons. Also, Soros recently purchased a huge stake in an Argentine bank, so he is net long obviously... and I think he did so because he saw little risk of turmoil upon an Argentine Peso float due to the perverse celebration upon the Real's float.

To: Henry Volquardsen who wrote (1602)	5/20/1999 11:29:00 AM
From: X Y Zebra	Respond to of 3536

biz.yahoo.com ......"Worries about the currency peg surfaced last week when the government said it would not implement $280 million of cuts in the education budget as part of $1.0 billion in spending cuts agreed with the International Monetary Fund. ''There is a sort of contagion going round the world again. We are becoming bearish in the short term,'' said one emerging markets currency trader, who noted that forward rates on the peso had risen on Wednesday, but had now come back in. Economic fundamentals in Argentina are now worrying the market and the government is in an election year......" (more)