Originally Posted by
keisari
Why is the Arg Peso still stronger against the dollar when the Euro, Brit Pound and most other currencies have depreciated is very interesting. Unless there is some government intervention, I suspect it is partly due to tourism, foreign investments and the continued high prices of commodities that are priced in US$. The last time the AR$ was very strong, the economy did not do very well but I think things are a bit different now.
I'm no FOREX guy but I'll take a stab. Since May the EURARS has gone from almost 5.1 to 4.36 pesos per euro and the GBPARS has gone from 6.2 to 5.42 pesos per pounds. Over the same time the USDARS went from 3.15 to 3.03. During the last months when the dollar has gained in strength, there's been a big change in the EURARS and GBPARS rates, but very little for USDARS. Perhaps since a lot of things are valued in USD in Argentina instead of the peso, the peso is merely a reflection of the dollar and its exchange rate with the dollar will shift very little. Other non-dollar currencies will thus still fluctuate.