BUENOS AIRES: Argentina's central bank on Thursday raised its benchmark interest rate by another 300 basis points to 33.25 percent, its second surprise rate increase in less than a week.
The country's peso currency closed at an all-time low of 21.2 per US dollar on Wednesday, the first trading day since the bank hiked the rate to 30.25 percent from 27.25 percent on Friday.
The bank has also heavily intervened in the spot market in recent weeks, selling $504.5 million on Wednesday.
The central bank over the past week has abandoned its schedule of reviewing monetary policy every other Tuesday.
The currency's sustained weakening has shown a lack of investor confidence in Argentina's economy, Latin America's third largest, even under business friendly President Mauricio Macri. Argentina remains blighted by one of the world's highest inflation rates.
Consumer prices in Argentina rose 2.3 percent in March, slightly down from 2.4 percent in February. Twelve-month inflation was 25.4 percent, the same level as February.
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