Over the last eight months or so, the US dollar has weakened against a basket of leading currencies. However, instead of the peso strengthening against the dollar -- which is what one would expect to happen -- it has weakened a bit. This suggests someone -- I presume the Argentine government -- is in the market buying dollars with freshly printed pesos. A Scottish gent (since returned to Old Blighty) informed me this is because Argentina is paying off some of its creditors piecemeal. Right now it's Spain who's to be paid back to the tune of $6bn. This is also the reason, apparently, why inflation is raising its ugly head again: lots of new pesos in the market. Unfortunately I can find no corroboration of this interesting theory on the web. Can anyone shed any new light on this mystery of high finance?