Argentina's peso weakens despite cenbank comments

Tue Oct 7, 2008 12:01pm EDT
 
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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.

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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