Argentine peso closes at three-month low

miércoles 10 de septiembre de 2008 16:52 ART
 

(Updates with peso's close)

BUENOS AIRES, Sept 10 (Reuters) - Argentina's peso fell on Wednesday to its weakest level against the dollar in three months as the U.S. currency continued to strengthen against counterparts around the globe.

Traders said the international trend was exacerbated in Argentina by low foreign currency inflows from exporters.

The peso closed down 0.57 percent to 3.0725/3.0750 per dollar ARS=RASL, in formal trade between banks, its weakest close since June 2.

In informal trade between foreign exchange houses, as measured by Reuters, the peso fell 1.52 percent to 3.1250/3.1300 per dollar ARSB=, its weakest close since June 17.

On world markets, the dollar .DXY scaled a one-year peak against the euro.

Globally, the dollar rise was fueled by retreating crude oil prices and by U.S. investors cashing out of emerging markets positions and bringing their money home.

"Investors still prefer having foreign currency positions and covering those positions is continuing to drive up the dollar," said one Argentine trader.

Argentina's central bank intervenes regularly in the foreign exchange market and traders said they expected it to step in to level the market. (Reporting by Walter Bianchi; Editing by Tom Hals)