Argentina peso weakens to new record low on economic uncertainty

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

April 5, 2019

BUENOS AIRES (Reuters) – Argentina’s peso weakened 1.32 percent to touch a record low of 44.0 per U.S. dollar, traders said on Friday, as political and economic uncertainty to put pressure on the local currency.

The peso later regained some strength, but nonetheless ended the day at an all-time low close of 43.97 to the greenback.

The economy has been racked by recession and high inflation as President Mauricio Macri, a favorite among investors for his free-market policies, loses popularity ahead of his October re-election bid. Voters have been hit by public utility subsidy cuts and other austerity measures ordered by Macri as part of his effort at erasing the primary fiscal deficit.

(Reporting by Jorge Otaola and Walter Bianchi; Writing by Hugh Bronstein; Editing by Jeffrey Benkoe)

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