Bloomberg News

Colombian Peso Declines as European Concern Saps Demand

September 17, 2012

Colombia’s peso fell from a one- month high as growing concern over the European debt crisis cut into demand for higher-yielding, emerging-market assets.

The peso slipped 0.2 percent to 1,797.64 per U.S. dollar at 9:07 a.m. in Bogota. It touched 1,786.43 on Sept. 14, the strongest level since Aug. 8. Today’s decline pared the peso’s gain this year to 7.8 percent.

“The peso is following declines in external markets,” Daniel Escobar, the head analyst at Global Securities in Bogota, said in a telephone interview. “We’re also seeing some dollar purchases from companies.”

Global stocks declined as European Union finance ministers failed to agree on a timetable for a more unified banking sector and clashed over terms of bailout requests and the role of the European Central Bank at a meeting Sept. 14 in Cyprus.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 was little changed at 6.56 percent, according to the central bank. It fell to 6.5 percent on Sept. 13, the lowest level on a closing basis since the securities were first issued in 2009.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus