Banking

Argentine peso stable as capital controls ease fallout from political uncertainty

Credit: REUTERS/MARCOS BRINDICCI

Argentina's peso opened slightly weaker on Tuesday at 56.10 per U.S. dollar, traders said, as capital controls continued to keep markets stable after a selloff triggered by a shock result in primary elections last month.

Adds markets and political context

BUENOS AIRES, Sept 10 (Reuters) - Argentina's peso ARS=RASL opened slightly weaker on Tuesday at 56.10 per U.S. dollar, traders said, as capital controls continued to keep markets stable after a selloff triggered by a shock result in primary elections last month.

Populist-leaning presidential candidate Alberto Fernandez thumped business-friendly incumbent Mauricio Macri in the Aug. 11 primary, putting the Peronist challenger on track to win the Oct. 27 general election.

The peso lost about a quarter of its value last month. It has regained some ground in September after the government announced limits on access to and international transfers of dollars, the preferred currency for Argentines nervous about the precariousness of Latin America's No. 3 economy.

Market players fret that Fernandez will take a harder stance than Macri towards investors as both political camps flirt with the idea of revamping the country's debt obligations in the face of a worsening recession and rising inflation outlook.

(Reporting by Walter Bianchi and Hugh Bronstein; Editing by Bernadette Baum)

((hugh.bronstein@thomsonreuters.com; 5411 4318 0655; Reuters Messaging: hugh.bronstein.thomsonreuters.com@reuters.net))

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