Argentine peso rebounds

AIRES: Argentina's peso strengthened sharply on Friday, gaining over 5 percent against the dollar after the central bank hiked the benchmark interest rate to 40 percent in a dramatic bid to shore up the currency. On Thursday, the peso plunged 7.8 percent even as the central bank hiked the rate by 300 basis points, its second surprise hike in less than a week.
After that move failed to calm markets, the bank boosted the rate again on Friday by 675 basis points. The central bank has hiked the benchmark rate some 1,275 basis points since April 27. That appeared to do the trick for now, as the peso traded up 5.5 percent at 21.8 pesos to the dollar in the late morning.