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Nov. 23 (Bloomberg) -- Colombia’s peso fell to a six-week low as growing concern the European debt crisis is worsening sparked a sell-off of higher-yielding, emerging-market assets.
The peso slid 0.5 percent to 1,928.60 per U.S. dollar at 10:10 a.m. Bogota time, from 1,918.53 yesterday. It touched 1,931.78, its lowest level since Oct. 10.
The debt crisis that began more than two years ago now risks engulfing Germany. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose to an all- time high as Germany failed to find buyers for 35 percent of the bonds offered at an auction.
“Investors are uneasy with all the negative news in external markets, giving them more and more reason to seek refuge in the dollar,” said Francisco Chaves, an analyst at Bogota-based brokerage Corredores Asociados SA.
The yield on Colombia’s 10 percent bonds due in July 2024 rose four basis points, or 0.04 percentage point, to 7.62 percent, according to the central bank. The bond’s price fell for a third day, dropping 0.363 centavo to 118.829 centavos per peso.
--Editors: Marie-France Han, Glenn J. Kalinoski
To contact the reporter on this story: Andrea Jaramillo in Bogota at firstname.lastname@example.org
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