Bloomberg News

Colombia Peso Strengthens Amid European Optimism, Oil Gains

August 21, 2012

Colombia’s peso advanced amid gains in crude oil, the nation’s biggest export, and on speculation European leaders will make progress in resolving the region’s debt crisis.

The peso appreciated 0.4 percent to 1,814.10 per U.S. dollar at the close of trading in Bogota. It dropped 1.6 percent last week on speculation officials will take more measures to stem a 6.9 percent advance this year, the best performance worldwide after the Hungarian forint and the Chilean currency.

A senior lawmaker with German Chancellor Angela Merkel’s party said concessions are possible for Greece as long as Prime Minister Antonis Samaras shows willingness to meet the main targets set out in his country’s bailout program.

“It’s a worrying situation, but concerns have eased and that helps drive gains,” Julian Cardenas, the chief economist at ING Pensiones y Cesantias, said by phone from Bogota. Crude’s advance to a three-month high is also leading to gains in the peso, he said.

Crude oil for September delivery rose to $96.68 a barrel on the New York Mercantile Exchange, the highest settlement since May 10.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 rose three basis points, or 0.03 percentage point, to 6.61 percent. The price dropped 0.327 centavo to 127.334 centavos per peso.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net


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