Argentina peso firms as exporters sell US dollars, say traders
BUENOS AIRES, March 18 (Reuters) - Argentina's peso gained 1.1 percent against the U.S. dollar on Friday as exporters sold dollars to the central bank, a day after a state-run lender snapped up greenbacks to push the peso lower, traders said.
The peso traded at 14.75 per dollar at the market close, up 0.54 percent for the week.
Several market players said the government had signalled it did not want the peso to appreciate too far and forecast more interventions by state-run banks to absorb dollars.
"Given the expectation of dollar inflows when we get an agreement with holdout creditors, as well as the sale of the soy harvest, the government wants to put a brake on any appreciation of the currency now," said one currency trader at a leading commercial bank.
"The role of public banks will be key in the coming weeks, they could be the most important absorber of excess dollars." (Reporting by Jorge Otaola; Writing by Richard Lough)
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