BUENOS AIRES, May 16 (Reuters) - Argentina’s peso currency opened 1.63 percent weaker on Wednesday at 24.50 per U.S. dollar, traders said, despite an offer by the central bank to sell up to $5 billion on the spot market.
Argentina requested a “high access stand-by arrangement” from the International Monetary Fund last week after the peso depreciated rapidly, prompting the central bank to sell reserves and hike interest rates to 40 percent in a bid to stop the peso’s slide and contain one of the world’s highest inflation rates.
The peso snapped a nearly two-week losing streak on Tuesday, closing 3.73 percent stronger after the bank sold $791 million on the spot market. It has already sold billions of dollars of reserves in previous interventions. (Reporting by Jorge Otaola; Writing by Dave Sherwood Editing by Jeffrey Benkoe)