Argentina ratcheted up interest rates to 60 per cent on Thursday, a 15 percentage point increase aimed at arresting a plunge in the peso that has threatened the credibility of its three-year-old reformist government.

The drastic action by the central bank came after the currency resumed its slide in morning trading, but appeared to do little to reassure investors. The peso — which has now lost roughly half its value this year — swiftly fell back to a fresh record low of 41.36 per dollar on Thursday, down almost 16 per cent on the day.

The two-day sell-off was triggered by President Mauricio Macri on Wednesday surprising the market by asking the International Monetary Fund to speed up the release of its $50bn bailout package to shore up next year’s budget.