Yesterday the Argentine peso appreciated vis a vis the value US dollar  by 7 centavos, from $15.80 AR to $15.73.  This is the first day since the election of Donald Trump that the value of the dollar has not risen against the peso.

Trump’s victory has thrown global markets into a period of volatility. Argentina saw the value of the Argentine peso fall 32 centavos on Monday and 60 centavos in total since the US election results were announced. But for now at least, the peso seems to have reached a floor and stopped falling.

In what was a very positive day for the Argentine economy, the Buenos Aires stock exchange also rose 5 percent as the peso’s value rose from $15.60 AR to $15.50 AR, in turn provoking a recovery in dollar-denominated bonds and mitigating the considerable plunge that we saw on Monday.

The let-up in the peso’s recent slump is largely believed to be a result of a much calmer day across the global markets, as stocks and bonds made a much-needed recovery. Leading this recovery was a 5 percent surge in oil after a 15 percent depreciation over the course of the past month.

And as if the Argentine financial scene hadn’t had enough pleasant surprises, yesterday Finance Minister Alfonso Prat-Gay announced that the Central Bank cut interest rates by 50 basis points late last night in spite of the the dollar’s relative depreciation. Prat-Gay asserted that the Central Bank determines interest rates based on inflation data, and the current volatility of the USD exchange rate due to “the Trump effect” is not an important factor. Translation? The Central Bank’s rate cuts signal that inflation in Argentina is going down despite this so-called “Trump effect”.