The strengthening U.S. dollar is causing capital flight in emerging markets such as Argentina and Brazil . For the past month, the Argentine peso and the Brazilian real have been among the world's worst-performing currencies against the dollar. Despite that weak performance and the negative effect that a rising U.S. dollar will have on their economies, major differences exist between Argentina's and Brazil's financial capacity and level of vulnerability to a stronger dollar. Argentina: A Delicate Financial Situation Aside from Venezuela, Argentina's financial situation is by far the most delicate one in South America. Buenos Aires has been running trade and current account deficits, and its international reserves are not large enough to tame the peso's depreciation. Its international reserves are more than $60 billion, and its current account deficit reached 4.8 percent of the gross domestic product last year.