Bloomberg News

Colombian Peso Gains as U.S. Jobs Report Shows Global Pickup

March 15, 2012

Colombia’s peso gained as a decline in U.S. jobless claims added to evidence of a pickup in the global economy, fueling demand for higher-yielding, emerging- market assets.

The peso rose 0.2 percent to 1,760.4 per U.S. dollar, from 1,764.00 yesterday. It has jumped 10 percent this year, the second-biggest advance after the Mexican peso among all currencies tracked by Bloomberg.

“There hasn’t been bad news coming from international markets and this helps keep risk perceptions low,” said Daniel Velandia, head analyst at Correval SA brokerage in Bogota. “When there’s a quiet day in foreign markets, investors can maintain their positions in the peso.”

In the U.S., the world’s biggest economy, claims for jobless benefits dropped to 351,000 last week, matching the lowest level in four years, Labor Department figures showed today. Spain and France sold 13.04 billion euros ($17 billion) of debt at lower borrowing costs today, the latest signs Europe’s debt crisis is abating.

The yield on Colombia’s 10 percent peso-denominated debt due July 2024 fell two basis points, or 0.02 percentage point, to 7.27 percent, according to the central bank.

To contact the reporter on this story: Christine Jenkins in New York at cjenkins28@bloomberg.net

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


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