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EMERGING MARKETS-Argentina seeks IMF deal as peso hits record low amid Iran fallout
BRASILIA, May 8 (Reuters) - The Argentine peso hit a record low on Tuesday, hurt by geopolitical tensions, before the South
American country announced it is seeking an International Monetary Fund (IMF)deal to stabilize its finances after two weeks of volatility.
The currency plunged as pessimism about the United States abandoning the Iran nuclear deal added fuel to a weeks-long global emerging markets sell-off.
U.S. President Donald Trump on Tuesday pulled the United States out of an international agreement aimed at stopping Iran from obtaining a nuclear bomb, and said he would reimpose economic sanctions on Iran immediately.
The decision is likely to raise the risk of conflict in the Middle East, upset America's European allies and disrupt global oil supplies.
In an address to the nation, Argentine President Mauricio Macri said that he had spoken with IMF Director Christine Lagarde, and that they had agreed to start to work immediately on building an agreement.
Local newspaper Clarin said Argentina would seek at least $30 billion in financing.
The move was remarkable, given that many people still blame the IMF's austerity requirements for policies that led to a financial and economic meltdown in 2001 and 2002 that hurled millions of middle class Argentines into poverty.
The local peso currency, which regained some of the ground it had lost earlier in the day, closed down 2.79 percent at 22.6 pesos per U.S. dollar after touching an all-time low of 23.5 to the greenback during the session. Argentina's Merval stock index also pared losses.
Currencies ended the day weaker across Latin America, where Trump's Iran decision contributed to driving investors away from high-yielding assets, already under pressure from growing expectations of higher U.S. interest rates.
EMERGING MARKETS-Argentina seeks IMF deal as peso hits record low...
BRASILIA, May 8 (Reuters) - The Argentine peso hit a record low on Tuesday, hurt by geopolitical tensions, before the South
American country announced it is seeking an International Monetary Fund (IMF)deal to stabilize its finances after two weeks of volatility.
The currency plunged as pessimism about the United States abandoning the Iran nuclear deal added fuel to a weeks-long global emerging markets sell-off.
U.S. President Donald Trump on Tuesday pulled the United States out of an international agreement aimed at stopping Iran from obtaining a nuclear bomb, and said he would reimpose economic sanctions on Iran immediately.
The decision is likely to raise the risk of conflict in the Middle East, upset America's European allies and disrupt global oil supplies.
In an address to the nation, Argentine President Mauricio Macri said that he had spoken with IMF Director Christine Lagarde, and that they had agreed to start to work immediately on building an agreement.
Local newspaper Clarin said Argentina would seek at least $30 billion in financing.
The move was remarkable, given that many people still blame the IMF's austerity requirements for policies that led to a financial and economic meltdown in 2001 and 2002 that hurled millions of middle class Argentines into poverty.
The local peso currency, which regained some of the ground it had lost earlier in the day, closed down 2.79 percent at 22.6 pesos per U.S. dollar after touching an all-time low of 23.5 to the greenback during the session. Argentina's Merval stock index also pared losses.
Currencies ended the day weaker across Latin America, where Trump's Iran decision contributed to driving investors away from high-yielding assets, already under pressure from growing expectations of higher U.S. interest rates.
EMERGING MARKETS-Argentina seeks IMF deal as peso hits record low...
