Currencies rally, easing lockdowns, IMF and Argentina

Latin American currencies have outperformed this week amid the improvement in global risk appetite, but this largely seems to reflect the fact that they had fallen furthest in the first place. In the meantime, the latest data show that activity across the region was severely depressed in April and May. And although lockdowns are now being lifted, recoveries will be more arduous than in most other EMs. Finally, the IMF has waded into the debate on Argentine debt restructuring, but its view that the deal on the table would restore sustainability is based on outdated assumptions.