Argentine markets split after currency controls stoke uncertainty

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Argentine markets split after currency controls stoke uncertainty
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Argentina's international dollar and euro-denominated bonds fell to record ...

BUENOS AIRES/LONDON - Argentina’s international dollar and euro-denominated bonds fell to record lows on Monday and the official peso diverged from the black market after President Mauricio Macri imposed capital controls on Sunday as the country’s debt crisis spirals.

The official peso had lost 23.8% of its value since the Aug. 11 primary election turned the country’s politics on its head, with business-friendly President Mauricio Macri getting soundly thrashed by his populist-leaning opponent Alberto Fernandez. More peso weakness was expected ahead. “The game has changed for the foreign exchange market,” said Sabrina Corujo, an analyst with Buenos Aires brokerage Portfolio Personal, warning that local stocks and bonds were set to weaken as well.

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