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UPDATE 1-Argentine country risk rises, peso falls amid political uncertainty

(Adds peso open, economic context)

BUENOS AIRES, Aug 28 (Reuters) - Argentina's peso currency opened 2.93% weaker at 58 per U.S. dollar on Wednesday while country risk rose 99 basis points to 2,089, its highest level in 14 years, according to the JP Morgan Emerging Markets Bond Index Plus.

Worries about Argentina's ability to meet its dollar-denominated debt obligations has increased since the local peso currency got trounced by political uncertainty after the Aug. 11 primary election. The peso has lost 21.84% of its value against the U.S. dollar since Aug. 12.

Argentina's central bank on Tuesday exceeded for the first time a guideline on reserve sales agreed as part of its $57 billion standby agreement with the International Monetary Fund, selling $302 million in the foreign exchange market as part of its effort to control the peso's fall.

The agreement with the IMF limits Argentina's central bank to $250 million in reserve sales daily, set when the exchange rate was above 51.5 pesos per dollar, with the option to intervene further to "counteract episodes of excessive volatility."

(Reporting by Jorge Otaola and Hugh Bronstein Editing by Chris Reese)