The Colombian peso slumped to its lowest level in three months at the close of business trading on Tuesday, amid fears the Greece crisis could spread further afield, reports Terra.com.
The peso ended the day at 1987.15 to the dollar, a decline of 23.1 units from Monday.
“It’s a day that corresponds to all international nervousness about the Greece situation and therefore increased the demand for so-called safe assets, in this case the dollar,” said Jaime Rodriguez, an analyst at Medellin brokerage Asesores Values.
The Colombian peso has been the worst performer of the six traded Latin American currencies in the past month.
Meanwhile, domestic public debt devalued in the secondary market Tuesday, as investors profited from the Central Bank’s surprise decision to cut its benchmark interest rate by 50 basis points to 3% last Friday.
The rate had been set at 3.5% – then a record low – for four months.
The decision came after consumer inflation fell 25 points on February’s figures, a significantly better result than was expected by the Banco de la Republica.