Argentine Peso Drops as Investors Doubt U.S. Bailout

The Argentine peso fell Monday as investors continued to bet that authorities won't be able to maintain the currency's government-backed trading band.

The currency's weakness comes despite ongoing U.S. financial assistance. Argentina's central bank on Monday signed an agreement with the U.S. Treasury to create a $20 billion swap line, the bank said in a statement. That give Argentina access to badly needed dollars, but analysts say it may not be enough to end the peso's currency crisis.

U.S. Treasury Secretary Scott Bessent has pledged to support the currency ahead of legislative elections due Oct. 26. "We have the capacity to act with flexibility and with force to stabilize Argentina," Bessent said Friday. The Treasury has purchased pesos on the open market at least twice.