A run on the peso has prompted Argentina to turn to the International Monetary Fund for financing. The central bank sold $175 million in reserves on Monday after the market closed in a new market intervention strategy.

It was expected to host a similar auction after the market's close on Tuesday.

The peso rallied 2.7 percent on Monday after the central bank hiked banks' reserve requirements in a bid to absorb some 100 billion pesos ($3.62 billion) from the financial system.

Stocks, however, reacted poorly to the measure, with the Merval index suffering its worst session since late 2014.

Bonds continued to be sold on Tuesday after falling on Monday, with Argentina's country risk - a measure of the spread between its bond yields and bonds issued by other countries - up 27 points at 593.

The central bank was also facing the expiry of some 514 billion Argentine pesos ($18.59 billion) in Lebac notes later on Tuesday. It was expected to keep interest rates high in order to roll them over.