Argentine peso falls again, central bank sells $170 million

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Argentine peso falls again, central bank sells $170 million
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Argentina's peso currency traded 2.85% weaker at 57.95 per U.S. dollar on W...

FILE PHOTO: A man shows Argentine pesos outside a bank in Buenos Aires' financial district, Argentina August 30, 2018. REUTERS/Marcos Brindicci

Worries about Argentina’s ability to meet its dollar-denominated debt obligations have increased since the peso got trounced by political uncertainty after an Aug. 11 primary election. The peso has lost 21.78% of its value against the U.S. dollar since Aug. 12. Country risk 11EMJ rose 136 basis points to 2,126, its highest level in 14 years, according to the JP Morgan Emerging Markets Bond Index Plus.

Minutes later the bank sold $65 million more of its reserves at an average 58.7269 pesos per dollar, traders said. The bank quickly followed up with a third auction, selling $55 million at an average 58.2354.

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