Colombia’s peso fell from a one-week high on concern the European debt crisis is worsening and amid a decline in oil, the South American nation’s biggest export.
“Europe is the big driver,” said Daniel Lozano, an analyst at Serfinco SA brokerage in Bogota. “Volatility is rising, and oil is dropping, which hurts the peso.”
Today’s decrease pared the peso’s gain this year to 6.1 percent, still the best performance among all of the counterparts tracked by Bloomberg. The currency is down 3.5 percent in May. Oil, which accounts for about 40 percent of Colombia’s sales abroad, fell to a 2012 low in New York.
The peso slid 0.7 percent to 1,826.75 per U.S. dollar. Yesterday it touched 1,809, the strongest level since May 18.
A Greek poll before elections on June 17 showed increased support for anti-austerity parties, sparking concern the country will leave the euro. Spain’s default risk rose to a record today as the nation struggled to bolster its banking system.
The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 rose almost one basis point, or 0.01 percentage point, to 7.15 percent, according to the central bank. The bond’s price fell 0.067 centavo to 122.591 centavos per peso.
To contact the reporter on this story: Andrea Jaramillo in Bogota at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org