Argentine leader's polling numbers drop; analysts blame money scandal, soaring inflation

FILE - In this Feb. 18, 2013 file photo, businessman Lazaro Baez arrives to the cemetery in Rio Gallegos, Argentina, to attend the burial of the mother of late president Nestor Kirchner. A prosecutor charged Baez of alleged money laundering on Friday, May 3, 2013. Baez is a businessman close to the late former President Nestor Kirchner and his wife, current President Cristina Fernandez. (AP Photo/Francisco Munoz, OPI Santa Cruz, File) (The Associated Press)

BUENOS AIRES, Argentina – Cristina Fernandez has rejected any currency devaluation while she's president of Argentina, and is dismissing as election-year politics a brewing scandal over allegations of money laundering by businessmen close to her and her late husband Nestor Kirchner.

But as inflation soars, central bank reserves drop and the economy slows, Argentines are losing faith in the peso, and in her leadership.

New polls show she's lost more than half the support she had when re-elected, including a 10-point ratings drop in the days since a scandal broke over allegations that Kirchner ally and businessman Lazaro Baez spirited millions in cash out of Argentina in private planes.

Fernandez waved off the trouble Monday night, but faced new trouble Tuesday as union boss Hugo Moyano launches a political party, taking away more supporters.