Photo via El Cronista

The US dollar reached record heights against the Argentine Peso as it climbed six Argentine centavos to hit a new ceiling of US $1 to AR $17.12 (selling price) after markets opened earlier today.

The small increase followed a much larger jump in its relative value on Monday when the dollar rose some 18 centavos next to the Argentine peso as the local financial daily Ambito Financiero reported.

“The demand for foreign exchange has become strong at the local level and helps explain the continuous advance of prices that have once again exceeded all historical highs,” Financial Analyst Gustavo Quintana said, commenting on the news.

The increases represented the seventh consecutive rise in the exchange rate, up 62 centavos since June 22.

Over the last month as a whole, the US dollar’s value in Argentina has expanded by almost US$1, rising from AR $15.91 (buy) and AR $16.31 (sell) on June 5 to the current figures of AR $16.71 (buy) and AR $17.12 (sell).

After assuming office in December 2015, one the first moves of the Let’s Change (Cambiemos) President Mauricio Macri’s national government was to remove previous controls placed on the US dollar by his predecessor, former President Cristina Fernández de Kirchner, and her Victory Front (FpV) administration.

Since then, demands for foreign exchange and currencies, newly available once more, have risen.

Macri’s government vowed to tackle snowballing inflation inherited from the previous FpV government but fell far short of its initial goal for 2016 when inflation totaled 42 percent nationwide—far greater than the government’s projections of 20-25 percent.

Recent Central Bank polling estimate that inflation will top out at just under or around 20 percent for 2017.

As The Bubble reported previously, a Central Bank report from 2016 highlighted that median estimates for the exchange rate by December 2017 were AR $18.5 per US dollar, while some private consultancies suggested that the rate could top AR$20 per US dollar.