Colombia’s peso climbed to its strongest level in almost four months as local investors sold dollars after European Union announced plans to help Greece with its debt crisis.
The currency rose 0.7% percent to 1,945.55 per dollar at 9:56 AM New York time from 1,959.31 yesterday. Earlier, it touched 1,941.24, the strongest since October 26.
“People had been buying dollars last week on concern about Greece, and now that markets are calmer, they are selling those positions,” said Felipe Munoz, a trader at Bogota-based brokerage Corredores Asociados SA. Dollar selling picked up once the peso broke through 1,950 per dollar, he said.
The yield on Colombia’s 11% benchmark bonds due in July 2020 fell six basis points, or 0.06 percentage point, to 8.85%, according to Colombia’s stock exchange.
(Drew Benson, Bloomberg)
