Argentine Peso to Fall as Govt Sticks to Trading Bands: Goldman

Goldman Sachs expects the Argentine peso to weaken, tracking the limit of its trading band as the government steps back from allowing a free float.

• The authorities will “continue to let the exchange rate trade close to the upper band,” limiting the pass-through to inflation and reducing market volatility, Goldman strategists Victor Engel and Teresa Alves wrote in a note Thursday
• Goldman now sees the peso at 1,540 per dollar in three months, compared with previous forecast of 1,515
  • Sees it at 1,590 in six months, vs 1,560 previously
  • Sees it at 1,690 in 12 months, vs 1,650
• Still, Argentina ...