By Rodrigo Campos, Karin Strohecker and Marc Jones
NEW YORK/LONDON (Reuters) -Investors are bracing for a renewed round of Argentine currency and bond market swings, as this Sunday’s midterm elections mark a defining moment for President Javier Milei’s economic reform efforts.
Milei is not on the ballot himself but his La Libertad Avanza party is, making the vote a key test for his right-wing stabilization strategy and far-reaching austerity plan, which endeared him to U.S. President Donald Trump and helped to secure a $20 billion U.S. swap line.
Even so, it’s been far from a smooth ride in the markets in recent weeks, and with most polls showing a tight race, investors see the potential for gyrations either way once the election results are in.
The peso stumbled to a record low against the dollar this week and investors expect further weakness ahead. Argentina’s heavily traded international bonds, star performers across emerging markets last year, have sunk into losses in 2025.
As investors look ahead to Sunday’s election, Trump has added to the pressure by threatening that he won’t waste more time on Argentina if Milei loses.
Argentina Braces for Market Turbulence as Midterm Elections Loom
