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The Tell: Argentina’s peso—fresh out of a crisis—is close to being overvalued, says B. of A.

Argentina’s peso is on its way to being overvalued, according to analysts from Bank of America Merrill Lynch. That is just a few months after the country contended with a financial crisis so severe that it walloped the peso and required a bailout from the International Monetary Fund.

Now, Argentina’s currency is too pricey, BAML strategists say.

The peso’s USDARS, -0.2594% downward spiral this past summer came on the back of a strengthening U.S. dollar, boosted in part by rising interest rates in the U.S., which in turn complicated matters for emerging markets with large dollar-denominated debt burdens, like Argentina.

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