Bloomberg News

Colombian Peso Falls Most in Month as Investors Buy Dollars

December 28, 2011

Dec. 28 (Bloomberg) -- Colombia’s peso fell the most in a month as investors bought U.S. dollars before the end of the year.

The peso plunged 1 percent to 1,941.25 per U.S. dollar, from 1,922.50 yesterday. That’s the biggest drop, on a closing basis, since Nov. 25.

The Colombian currency has retreated 1.7 percent this year on concern global growth will slow amid Europe’s sovereign-debt turmoil. U.S. stocks fell today as a surge in the European Central Bank’s balance sheet to a record highlighted the growing risks of the region’s debt crisis.

“What we’re seeing today is specific trades moving the market as investors make last-minute operations before the end of the year,” said Camilo Perez, head analyst at Banco de Bogota SA. “With such low volume, any trade causes sharp movements in the peso.”

The yield on the nation’s 10 percent bonds due in July 2024 rose one basis point, or 0.01 percentage point, to 7.64 percent, according to the stock exchange. The bond’s price fell 0.136 centavo to 118.512 centavos per peso.

--Editors: Marie-France Han, Brendan Walsh

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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