BUENOS AIRES (Reuters) – Argentina’s peso weakened 1.32 percent to touch a record low of 44.0 per U.S. dollar, traders said on Friday, as political and economic uncertainty put pressure on the local currency.

The peso later regained some strength, but nonetheless ended the day at an all-time low close of 43.97 to the greenback.

Recession and high inflation dog the government of President Mauricio Macri, a favorite among investors for his free-market policies, and he is losing popularity ahead of his October re-election bid.

Voters have been hit by public utility subsidy cuts and other austerity measures ordered by Macri as part of his effort at erasing the primary fiscal deficit.

Argentina will face financing needs of $27.3 billion next year, according to data published on Friday by the treasury, up from its previous estimate of $25.9 billion. The data showed that peso-denominated debt issuance was seen at $17.8 billion next year, up from a previous forecast of $16.1 billion.

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