Bloomberg News

Colombia Peso Drops for First Time in Four Days on U.S. Concern

September 04, 2012

Colombia’s peso dropped for the first time in four days as concern the U.S. economy is slowing hurt demand for higher-yielding emerging market assets.

The peso depreciated 0.2 percent to 1,824.53 per U.S. dollar at 10:26 a.m. in Bogota, paring this year’s rally to 6.2 percent, still the best performance after the Hungarian forint and Chilean peso among all currencies tracked by Bloomberg.

Colombia’s currency fell in line with Latin American counterparts as a U.S. manufacturing report fueled concern global growth is stalling, said William Florez, an analyst at Helm Bank SA’s brokerage unit in Bogota.

“Those international figures haven’t been very good,” he said in a telephone interview. “The peso is seeing a small drop influenced by that external context.”

The peso dropped 0.6 percent last week as the central bank and the Treasury bought dollars to help Colombian exporters by stemming the local currency’s gain.

Global stocks fell today as reports showed U.S. manufacturing contracted for a third straight month in August while China’s shrank at the fastest pace since 2009.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 was little changed at 6.62 percent.

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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