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. Last Updated: 07/27/2016

Argentine Peso Floats, Falls 41%

Argentina's currency dived Friday on its return to the foreign exchange market after 10 years, imposing a 41 percent devaluation on ordinary Argentines who are losing patience at economic chaos.

The full extent of Argentina's financial turmoil began to hit home to global business as analysts warned of foreign banks losing $6.2 billion.

The peso, pegged at parity to the U.S. dollar in 1991 to fight inflation, closed Friday at 1.65/1.70 per dollar on the free-floating market.

But volume was low and exchange houses were quiet as Argentines, short of cash after new bank curbs and years of recession, shunned the new high price for the dollar.

Analysts say the peso might drop to as much as 2 to the dollar in coming months if the government fails to stop the economy from spinning further out of control.