Bloomberg News

Colombian Peso Declines Before European Debt-Crisis Summit

October 25, 2011

Oct. 25 (Bloomberg) -- Colombia’s peso fell as the cancellation of tomorrow’s meeting of European Union finance ministers prompted concern that a leaders’ summit won’t agree on a deal to solve the debt crisis.

The peso declined 0.3 percent to 1,878.05 per U.S. dollar, from 1,872.06 yesterday. The currency has dropped 5.1 percent in the last six months.

Summits of the 27 European Union leaders and 17 leaders of the euro area will take place tomorrow in Brussels as scheduled, EU President Herman Van Rompuy’s office said. A separate meeting of EU finance ministers was canceled.

European policy makers, pressed by politicians and investors around the world, are struggling to devise a plan that persuades markets they can stamp out the contagion by bolstering the region’s rescue fund while debating on the size of losses they take on Greek bonds.

“Europe is again the driver in markets as investors await the results of tomorrow’s meeting,” said Jorge Cardozo, an analyst at Bogota-based brokerage Corredores Asociados SA.

The yield on Colombia’s benchmark 10 percent bonds due in July 2024 rose one basis point, or 0.01 percentage point, to 7.49 percent. The bond’s price fell 0.078 centavo to 120.068 centavos per peso.

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

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


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