Argentina pushes interest rates to 40% to defend the peso

Foreign investors switch from emerging currencies to the dollar as inflation runs at 25%

Argentina's central bank raised the country's interest rates to 40% on Friday, the third hefty increase in eight days in a continuing attempt to defend the slumping peso and put a lid on soaraway inflation.

On Thursday the bank lifted borrowing costs from 30.25% to 33.25%, having already raised them from 27.25% on 27 April.

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