Bloomberg News

Colombian Peso Advances on Foreign Direct Investment Outlook

November 16, 2011

Nov. 16 (Bloomberg) -- Colombia’s peso rose the most in three weeks after the central bank said foreign investment may soar to a record.

The peso advanced 0.4 percent to 1,906.66 per dollar at 2:52 p.m. in Bogota, from 1,915 yesterday, the biggest gain since Oct. 27. The peso has fallen 2.4 percent since Oct. 28.

“Investors are thinking that recent declines were excessive,” said Wilson Tovar, analyst at Acciones y Valores. “Strong foreign-direct investment and exports are also counteracting negative global market news.”

Foreign direct investment may reach a record $12 billion this year, up from $9.5 billion last year, central bank chief Jose Dario Uribe said Nov. 11. Colombia’s exports rose 36 percent in September from the same month last year to $4.48 billion, the government statistics agency said Nov. 4.

The yield on Colombia’s benchmark 10 percent bonds due in July 2024 rose one basis point, or 0.01 percentage point, to 7.55 percent. The bond’s price fell 0.073 centavo to 119.482 centavos per peso.

--Editors: Marie-France Han, Lester Pimentel

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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