Bloomberg News

Colombia Peso Gains as Eased Greek Default Concern Boosts Demand

May 10, 2012

Colombia’s peso rose from a four-week low as reduced concern about Greece’s sovereign debt revived demand for higher-yielding assets in emerging markets.

The currency appreciated 0.3 percent to 1,762.93 per U.S. dollar after touching 1,782.63 yesterday, the weakest level since April 12. The peso is up 10 percent this year, the best performance among all currencies tracked by Bloomberg.

“External markets are calmer today,” said Daniel Escobar, the head analyst at Global Securities brokerage in Bogota. Higher prices for oil, Colombia’s biggest export, and a report showing U.S. first-time claims for jobless benefits fell to a one-month low also helped buoy demand for the Colombian currency, he said.

The yield on the government’s 10 percent peso-denominated debt due in July 2024 rose two basis points, or 0.02 percentage point, to 7.11 percent, according to the central bank. It closed on May 7 at 7.03 percent, its lowest level since the debt was issued in 2009. The price decreased 0.198 centavo to 123.012 centavos per peso.

A European Commission spokesman, Olivier Bailly, said Greece’s financial needs “are covered” even as political parties struggled to form a coalition government.

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


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus