Argentine peso starts 2026 with a 0.68% drop under new floating band regime

BUENOS AIRES, Jan 2 (Reuters) - Argentina's peso ARS=RASL weakened 0.68% in early trading in the year's first session to 1,465 per dollar under a new phase of the central bank's monetary program aimed at building international reserves.

Starting Monday, the ceiling and floor of the currency band will adjust monthly in line with inflation data from two months earlier. For January, the band will move at a 2.5% monthly pace, reflecting November inflation.

"Tying the bands to inflation with a two-month lag creates a feedback effect: Now the exchange rate will follow inflation, and inflation will move the band," said Emilio Botto, head of strategy at Mills Capital Group.