Colombia’s peso climbed the most in a month as gains in global equity markets fueled demand for higher-yielding, emerging-market assets.
The currency rose 1.1% to 1,980.59 per dollar at 10:40 a.m. New York time, from 2,003.21 yesterday.
The MSCI Emerging Markets Index jumped 1.8% after sinking 6.1% in the past three sessions. Crude oil, Colombia’s biggest export, surged 1.6% to $73.01 a barrel.
“International markets have calmed some and that’s allowing local markets to recover after last week’s sell off,” said Camilo Perez, an analyst at Banco de Bogota SA, the country’s second-biggest bank. “Oil helps. It’s another factor today.”
The yield on Colombia’s 11% benchmark bonds due in July 2020 fell eight basis points, or 0.08 percentage point, to 8.8%, according to Colombia’s stock exchange.
(Drew Benson, Bloomberg)