Argentina's peso slumped on Wednesday, breaching the trading band set by the government for the first time and threatening to throw its policies to control inflation and build up foreign currency reserves into disarray. The trading limits were part of US$20-billion deal Argentina struck with the International Monetary Fund in April. While the Treasury stepped back from the currency market, the Central Bank moved to expand sales of dollar futures contracts. Defending the currency band could now come at a high price, warned said Thierry Larose, a portfolio manager at Vontobel Asset Management. It is also important to avoid burning FX reserves in a battle they are unlikely to win.”by Nicolle Yapur, Bloomberg