Dec. 12 (Bloomberg) -- Colombia’s peso declined after Moody’s Investors Service said it will review the ratings of European Union nations, cutting into appetite for higher- yielding emerging-market assets.
The peso dropped 0.4 percent to 1,932.35 per U.S. dollar at 9:34 a.m. Bogota time, from 1,925.50 on Dec. 9. The currency has slipped 1.1 percent in the past month.
Moody’s said today that it will review the ratings of all EU countries in the first quarter because last week’s regional summit failed to produce “decisive policy measures” to end the debt crisis. At the summit, euro-zone leaders agreed to a fiscal accord to create more oversight of budget policies and create automatic penalties for countries violating deficit rules.
“Europe is again the common denominator that’s driving declines in stocks and currencies” including the Colombian peso, said Patricia Gonzalez, an analyst at Banco de Bogota SA, the nation’s second-biggest bank.
The yield on Colombia’s 10 percent bonds due in July 2024 rose one basis point, or 0.01 percentage point, to 7.57 percent, according to the stock exchange. The bond’s price fell 0.062 centavo to 119.227 centavos per peso.
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