Milei Euphoria Meets Reality as Peso’s Post-Vote Gains Fade Fast

The rallies unleashed by Argentina President Javier Milei’s surprising electoral have been stunning, with bond prices posting record gains and the stock market skyrocketing 30% in two days as investors stampeded back in.

Yet the euphoria largely bypassed the nation’s currency, the linchpin of Milei’s plans to remake Argentina’s economy.

After an initial jump early Monday, the peso has steadily given back those gains and slid 2.4% on Tuesday, leaving it only slightly above where it was before the vote.

The movement reflects, in part, gnawing doubts that the country will maintain the currency-trading band that it defended so ...