Bloomberg News

Colombia Peso Holds Near 9-Month Low as Equity Drop Saps Demand

September 29, 2011

Sept. 29 (Bloomberg) -- Colombia’s peso held near a nine- month low as declines in U.S. equities eroded demand for higher- yielding, emerging-market assets.

The peso erased gains, trading little changed at 1,917.65 per U.S. dollar at 3:21 p.m. New York time, from 1,917.32 yesterday. The currency touched 1,933 on Sept. 26, its lowest intraday level since December. The peso has plunged 7.7 percent since June 30, after rising in the first two quarters of 2011, as concern the global economy is slipping into a recession hurt risk appetite.

“The market is all over the place as investors struggle to focus since there is no one key driver,” said Camilo Perez, head analyst at Banco de Bogota SA, Colombia’s second-biggest bank.

U.S. stocks declined, erasing a 2.2 percent advance by the Standard & Poor’s 500 Index, as losses by consumer and technology companies offset lower-than-estimated claims for unemployment benefits.

The yield on Colombia’s benchmark 10 percent bonds due in July 2024 fell six basis points, or 0.06 percentage point, to 7.54 percent. The bond’s price rose 0.516 centavo to 119.765 centavos per peso.

--Editors: Glenn J. Kalinoski, Marie-France Han

To contact the reporter on this story: Andrea Jaramillo in Bogota at

To contact the editor responsible for this story: David Papadopoulos at

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