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Argentine Default Sours Outlook for Peso as Talks Ordered

Investors are anticipating a 11 percent drop in the Argentine peso after the nation defaulted for the second time in 13 years last week.

Non-deliverable forwards that show traders’ expectations for the peso over the next 90 days fell to 9.25 per dollar at 4:35 p.m. in New York, the weakest in six months, after the country missed an interest payment due July 30 on $539 million of restructured bonds. In the spot market, where the peso’s level is managed by the central bank, the currency traded at 8.26. Benchmark bonds declined for a third day.