The Colombian peso plunged to a one-week low Wednesday amid fears that tougher regulations in Europe will reduce the demand for high-yielding emerging market assets, reports Business Week.
The peso dropped 0.7% to COP1,995.43 against the U.S. dollar on Wednesday at 10:35 AM, but had earlier fallen to 1,982 – the lowest level since early last week.
Colombia’s benchmark bond returns slipped 0.01 percentage point to 8.34% resulting in a 0.05 centavo rise in the bond’s price to 117.725 centavos per peso.
The Colombian currency fell to a three-month low in early May due to European economic uncertainty and fears that Greece’s debt crisis could spread to other countries.
The Colombian peso was the worst performer of the six traded Latin American currencies in April.