Colombia’s peso fell toward a four- month low after data showing U.S. payrolls missed forecasts and factory output slowed in China damped demand for higher-yielding assets.
The peso fell 0.1 percent to 1,830.63 per U.S. dollar. It touched 1,853.95 on May 23, the weakest level since Jan. 11. The currency plunged 3.6 percent last month and rose 0.1 percent this week.
“Data in the U.S. and China is further fueling the negative mood in global markets,” said William Florez, an analyst at Helm Bank SA (PFBHELMB)’s brokerage unit in Bogota.
Colombia’s short- and medium-term bonds are gaining as investors seek refuge in shorter maturities amid the concern, Florez said.
The yield on Colombia’s 9.25 percent peso-denominated debt due May 2014 dropped 15 basis points, or 0.15 percentage point, this week to 5.82 percent, according to the central bank. The yield on bonds due 2024 fell three basis points to 7.13 percent.
U.S. Labor Department figures showed today that payrolls climbed by 69,000 last month, less than the most-pessimistic forecast of analysts surveyed by Bloomberg, after a revised 77,000 gain in April, adding further evidence that the labor- market recovery is stalling. Separately, China’s Purchasing Managers’ Index dropped to 50.4 from 53.3, the weakest production growth since December.
World stock markets lost more than $4 trillion last month amid concern Greece will exit the euro and Spain’s finances will deteriorate further. Earlier today, data showed that a gauge of manufacturing in the 17-nation euro zone fell to a three-year low of 45.1 in May, indicating a 10th month of contraction, while unemployment reached 11 percent, the highest on record.
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