Colombia’s peso headed for its first weekly drop in almost a month as prices fell for oil, the country’s biggest export, and Greece’s struggle to form a government damped demand for the South American nation’s higher- yielding assets.
“There is concern about Europe, and that hits Colombia,” said William Florez, an analyst at Helm Bank SA’s brokerage unit in Bogota. “It leads to sensitivity and a flight to safer assets.”
The peso was little changed at 1,763.40 per U.S. dollar at 9:40 a.m. in Bogota and has fallen 0.3 percent this week in its first five-day drop since April 13. The currency has rallied 9.9 percent this year, making it the best performer among all of the world’s counterparts tracked by Bloomberg.
Oil fell after China reported that industrial production grew at the slowest pace since 2009. Crude for June delivery declined 0.3 percent to $96.78 a barrel in New York.
The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 fell one basis point, or 0.01 percentage point, to 7.11 percent, according to the central bank. The price increased 0.044 centavo to 123.056 centavos per peso.
The peso touched a four-week low of 1,782.63 per dollar on May 9 as Greece’s political leaders tried to carve out a government after inconclusive elections. Spain took control of a lender this week in its fourth attempt in three years to convince investors the nation’s banking system is solid.
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