Buenos Aires — Argentina's embattled peso currency was sharply weaker on Thursday, hitting a new record low against the US dollar and cranking up the challenge facing President Mauricio Macri's government as it looks to tame unruly local markets. The peso was down about 5% as of midday local time after tripping 3.52% lower on Wednesday as uncertainty over a recession and high inflation fed investor nervousness about elections in October. Argentinian debt was also hit, with bond yields rising sharply, while an index of the Latin American nation's risk has leapt to its highest level in five years, far outstripping other similar emerging markets. Macri's re-election bid is looking increasingly fraught as he struggles to tame annual inflation running above 50% and placate a electorate hard-hit by the economic malaise, a volatile peso and rising poverty. This has spooked markets even beyond Argentina, concerned about political uncertainty and the possibility of debt restructuring under...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.