Earlier on Thursday the peso fell to a fresh record low of 40.00 per U.S.
Nerves are frayed in Latin America's No. 3 economy as it struggles to break free from its notorious cycle of once-a-decade financial crises.
Argentina had secured the biggest International Monetary Fund bailout in history in June this year as its government needed help to rein in soaring twin deficits in the country and prop up the Argentine peso.
"Regardless of what happens from here, the country's weak balance sheets mean that Argentine markets will remain extremely vulnerable to swings in investor risk appetite", added Glossop.
When Argentine President Mauricio Macri told the country he had asked the International Monetary Fund to speed its disbursement of a $50 billion loan, he consciously aimed to assuage the fears of uneasy market watchers. He said the decision sought to dispel any uncertainty, but he did not specify the amount or when the funds would be released.
International Monetary Fund chief Christine Lagarde said on Wednesday she had agreed to Argentinian President Mauricio Macri's request to speed up payments of a $50bn loan in a bid to shore up Argentina's battered economy. She said that the "more adverse worldwide market conditions" had not been "fully anticipated" when the IMF and Argentina reached the deal in June.
The managing director of the global banking system, Christine Lagarde, said Wednesday that revisions were warranted in light of "the more adverse worldwide market conditions, which had not been fully anticipated in the original program". The peso is down 49 percent this year.
She said that the "more adverse worldwide market conditions" had not been "fully anticipated" when the IMF and Argentina reached the agreement in June.
The country's central bank acted quickly in response, raising its benchmark lending rate 15 points, to 60 percent - the highest such rate in the world, according to The Associated Press. REUTERS/Agustin Marcarian source Pedestrians walk past an electronic board showing currency exchange rates in Buenos Aires' financial district, Argentina, June 29, 2018. The yields had declined earlier after a measure of underlying inflation just managed to hit the Federal Reserve's 2 percent target.
Ahead of an expected re-election bid next year, Macri has seen his popularity fall after reducing retirement benefits and cutting utility subsidies that people had grown accustomed to under Fernandez.
"I know that these tumultuous situations generate anxiety among many of you", Macri said.
Dozens died in protests and looting in December 2001 as the economy unraveled and Argentina eventually suffered a record $100 billion debt default. "I understand this, and I want you to know I am making all decisions necessary to protect you".