BOGOTA, Colombia

Argentine President Javier Milei's party suffered a significant defeat over the weekend at the hands of the Peronist opposition in a Buenos Aires provincial election, a crucial test ahead of Oct. 26 midterm parliamentary polls.

The center-left Peronist party, united under Fuerza Patria, secured over 47% of the vote, while the ruling La Libertad Avanza (LLA) garnered 33.8%, according to the provincial electoral body.

Milei acknowledged the defeat at his party's headquarters in La Plata.

"Today we suffered a clear defeat," he said, vowing however not to alter his government's policies.

"We are not retreating one millimeter in government policy. The direction is not only confirmed, but we will deepen and accelerate it further," he added.

The opposition's margin of victory exceeded 13 points, a significant blow to the national government.

The election results had an immediate impact on the local currency.

The US dollar surged to 1,365 pesos for purchase and 1,425 pesos for sale, representing a 45-peso jump from the previous price. Private entities were offering the dollar at 1,470 pesos in the morning.

The market’s reaction was also severe, with Argentine shares on Wall Street plummeting. Companies such as BBVA, Banco Macro and Banco Supervielle led the decline.

In contrast, the Fuerza Patria headquarters was jubilant, with Buenos Aires Governor Axel Kicillof being greeted with cheers and chants of "Sit down, Axel, President!"

Kicillof urged Milei to prioritize the people's needs, saying: "Govern for the people, not for outsiders, corporations."

Peronist leader and former President Cristina Fernandez de Kirchner appeared on her balcony to celebrate the victory as dozens gathered outside her Buenos Aires apartment.