Pressure on the Argentine peso this week illustrates how exposed the currency is to external turbulence.
The peso crossed the 30 to the US dollar mark on Monday as the global spotlight focused on Turkey's battle to prop up the lira, which has been impacted by fears over the capacity of local firms to repay foreign debt, among other factors.
In Argentina, the central bank unveiled three measures to support the peso - a 500 basis point policy rate hike, a dollar auction and a plan to reduce its stock of short-term Lebac debt instruments. In parallel, the treasury announced measures that will generate estimated savings of 12.500bn pesos (US$421mn) this year and 53.000bn pesos next.
The IMF has supported the Lebac move, which "should remove an important source of vulnerability as well as help contribute to a more effective monetary policy framework," IMF spokesman Gerry Rice said.
"What happened yesterday [Monday] is what has been happening in Argentina for a few months now, in that we had quite a turbulent day in the foreign exchange market," said Sebastián Martínez, senior macroeconomic analyst at Buenos Aires-based consulting firm ABECEB.
"The trigger was the crisis in Turkey, but obviously there are internal factors," he added, citing structural weaknesses in the Argentine economy which make it particularly vulnerable to volatility in international financial markets.
"Any factor that impacts the financial market of any country could lead to significant contagion in Argentina."
David Lattery, chief market strategist at Paris-headquartered asset managers Natixis, commented on the fallout from Turkey's currency battle.
"This risk to EM contagion is sentiment, not fundamental," he said. "Turkey has limited trade and economic ties to other EMs. However, market reaction can throw the baby out with the bathwater as we see with other fragile EMs like Argentina and Hungary, who both saw steep currency losses in sympathy with the lira."
Martínez, meanwhile, said the rate hike would not have a major direct impact on the country's financial institutions but would hit companies and consumers.
"Raising the rate isn't a pleasant measure to implement as it impacts activity levels and impacts the cost of financing for consumption and investment," he said.
Moody's senior sovereign analyst Gabriel Torres said the hike would support the peso but likely put the brakes on growth.
"We expect the economy to contract this year and anticipate only modest growth in 2019. While the government is well placed to meet this year's fiscal targets, lower growth in a high interest rate environment will complicate the authorities' 2019 fiscal consolidation efforts, a credit negative," he said.
Argentina has unveiled a program to strengthen the country's finances, with one key objective achieving a primary balance by 2020, which would ease borrowing pressure.
The peso was trading at around 18.5 to the dollar in January. On Tuesday the peso was trading at just under 30 to the dollar.