Argentine Peso Hits All-Time Low as Emerging Markets Sell Off
(Bloomberg) -- The Argentine peso fell to a record low early on Wednesday as South America’s second-largest economy looks particularly vulnerable during an emerging-market selloff.
The peso weakened as much as 2.7 percent to 30.5 per dollar shortly after markets opened in Buenos Aires. It has recorded losses during seven of the past eight days and is down about 38 percent so far this year, the world’s worst-performing currency.
The recent losses are in part due to contagion in emerging markets stemming from fears of a financial crisis in Turkey. Argentina’s large fiscal deficits, high debt load and double-digit inflation have also been hurting the currency since the beginning of the year.
The peso pared back some of its losses, trading 0.6 percent lower around midday trade, after the Argentine central bank sold dollars in the foreign exchange market in two separate auctions. Representatives for the bank did not respond to Bloomberg’s requests for comment.
©2018 Bloomberg L.P.