Bloomberg News

Colombia Peso Drops to Weakest Level in ‘11 on China, Germany

September 30, 2011

Sept. 30 (Bloomberg) -- Colombia’s peso fell to its lowest level this year as declines in Chinese manufacturing and German retail sales signaled global growth is slowing.

The peso fell 0.7 percent to 1,931.98 per U.S. dollar at 3:31 p.m. New York time, from 1,917.65 yesterday. Earlier it touched 1,936.88, its lowest level since Dec. 30. The peso plunged 7.5 percent in the past month and 8.3 percent this quarter.

“The local market is completely focused on what is happening abroad,” said Andres Pardo, the head analyst at financial services holding company Corp. Financiera Colombiana, known as Corficolombiana. “There’s a lot of volatility as investors look at the economic data and try and look for signals on future growth. People are nervous.”

Chinese manufacturing shrank for a third month, the longest contraction since 2009. German sales slumped 2.9 percent in August, the most in more than four years and more than the median forecast in a Bloomberg survey for a 0.5 percent decline.

The yield on Colombia’s benchmark 10 percent bonds due in July 2024 rose six basis points, or 0.06 percentage point, to 7.59 percent. The bond’s price fell 0.550 centavo to 119.261 centavos per peso.

--Editors: Glenn J. Kalinoski, Richard Richtmyer

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus