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Argentina's peso weakens despite cenbank comments

Tue Oct 7, 2008 12:01pm EDT

BUENOS AIRES, Oct 7 (Reuters) - Argentina's peso currency slumped to a 5-1/2-year low on Tuesday despite the central bank's assurances that it would move to protect peso deposits and to support demand for the currency.

Currencies  |  Global Markets

In informal trade between foreign exchange houses, as measured by Reuters, the peso slid 1.77 percent to 3.2950/3.3000 per U.S. dollar ARSB=, its weakest level since early 2003.

In formal trade between banks ARS=RASL the peso slipped 0.55 percent to 3.2125/3.2150 per dollar. The central bank intervenes in the interbank market to keep the currency from abrupt movements. (Reporting by Walter Bianchi, writing by Fiona Ortiz; Editing by Leslie Adler)



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