FX Week

Uruguay floats peso amid Argentine woes

MARKET NEWS

MONTEVIDEO -- Uruguay last week abandoned its currency band system and allowed its currency to float amid fears of further contagion from its economically crippled neighbour Argentina.

Uruguay’s economy is mainly export-led, and the government floated the currency after its exports were unable to compete with those from Argentina, whose currency has fallen by more than 70% this year.

"It was a shock and we saw a lot of selling on the back of it," said Jana Butlang, strategist at Fleet Global M