Argentina peso hits three-month low, bonds slide

miércoles 10 de septiembre de 2008 17:56 ART

(Adds bonds, stocks)

BUENOS AIRES, Sept 10 (Reuters) - Argentina's peso fell on Wednesday to its weakest level against the dollar in three months, while bonds slipped as investors ditched riskier emerging market assets.

The peso took a beating as the U.S. currency continued to firm against counterparts around the globe, with low foreign currency inflows from exporters exacerbating the peso's slide.

It 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 lowest level since June 17.

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

On the local debt market, Argentine bonds <AR/BONOS> closed down for a second straight session, falling by 1.1 percent on average due to greater risk aversion amid fears over the health of the U.S. economy, traders said.   Continuación...