Bloomberg News

Colombian Peso Falls Most in Week on European Political Turmoil

November 09, 2011

Nov. 9 (Bloomberg) -- Colombia’s peso fell the most in a week as Italian bond yields soared and talks on forming a new government in Greece dragged into a third day, stoking concern that Europe’s debt crisis will worsen.

The peso weakened 0.4 percent to 1,918.7 per U.S. dollar at 9:34 a.m. in Bogota, from 1,910.85 yesterday.

“The peso continues to devaluate because of risk,” said Camilo Perez, an analyst at Banco de Bogota SA. “Complications in Europe and Italy have people very nervous.”

The euro slid as much as 1.8 percent and stocks tumbled in the U.S. and Europe after yields on Italian bonds rose to euro- era records. Greek Prime Minister George Papandreou’s talks on forming an interim government are stalled on European demands for written commitments to austerity.

The yield on Colombia’s benchmark 10 percent bonds due in July 2024 was little changed at 7.5 percent.

--Editors: Brendan Walsh, Marie-France Han

To contact the reporter on this story: Blake Schmidt in Bogota at bschmidt16@bloomberg.net

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


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