Argentine President Mauricio Macri on Wednesday announced plans to raise salaries and cut taxes after voters rejected his austerity policies in Sunday's primaries.
Macri, who is seeking a second term in the October election, said he planned to cut income taxes for workers, increase subsidies and freeze fuel prices for 60 days to ease the economic shock.
He also announced an unspecified increase in the minimum salary, currently 12,500 pesos ($ 208) per month, saying 2 million workers would benefit from it.
However, the president's announcement did not immediately help allay financial market concerns, with the peso falling more than 6 percent to close at 62.18 against the dollar.
This means that the Argentine currency has lost more than a quarter of its value since Friday.
The president said the measures "will benefit 17 million workers, their families and all small and medium enterprises, formal and informal, government and private."
He said the $ 665 million package would "relieve the pockets of Argentines" who are under inflation of 55 percent.
– Electoral strike
Macri's corporate pastors were defeated by center-left Peronist candidate Alberto Fernandez on Sunday in the primaries, an indicator of the general election in October.
Fernandez, who has become the front-runner for the presidency, said the measures were out of desperation.
"It is like an atheist who starts praying before death," he told Argentine radio station "L'Distibe".
"My job is to ensure governance. Dialogue is the only way. The climate of uncertainty has done a lot of damage and forces us to take responsibility. I want to reflect the reassurance of this electoral process that has begun," Macri said in a message shortly before the stock market opened.
"We had good and extensive conversations," he said on Wednesday afternoon with Fernandez.
He added that his leftist rival "pledged to cooperate in all possible areas to ensure that this electoral process and uncertainty affect the economy only as little as possible."
Argentina is currently in recession, with inflation of 22 percent in the first half of the year, one of the highest in the world.
32 percent of Argentines are poor.