Colombia’s peso posted its first weekly drop in almost a month as oil fell 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 1,762.85 per U.S. dollar at the close of trading and slid 0.2 percent this week in its first five-day drop since April 13. The currency has rallied 10 percent this year, making it the best performer among all of the world’s counterparts tracked by Bloomberg.
Oil, Colombia’s biggest export, fell after China reported industrial production grew at the slowest pace since 2009. Crude declined 1.2 percent to $95.87 a barrel in New York.
The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 rose three basis points, or 0.03 percentage point, to 7.14 percent, according to the central bank. The price decreased 0.242 centavo to 122.770 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.
To contact the reporter on this story: Christine Jenkins in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com