The Colombian peso strengthened to levels not seen since August 2008 as the dollar is weakening against all the world’s main currencies.
The Colombian peso appreciated to 1,858 to the dollar. The peso hadn’t closed that strong since Aug. 13, 2008, when it closed at COP1,850.30 to the dollar.
“The dollar is very weak against all the currencies,” Daniel Lozano, a market analyst with local brokerage Profesionales de Bolsa SA, said. “Technically, now that it passed below the COP1,900 threshold, the floor is very low,” he added.
He expects the peso to keep appreciating.
The Colombian IGBC stock index fell 0.6%, down 11,288.30 points.
Preferred shares of the country’s largest bank, Bancolombia SA (CIB), fell 1.3% to COP20,480, while shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) fell 0.2% to COP2,695.
The yield on the benchmark peso-denominated government bond maturing in 2020 ended at 8.764%, from 8.82% on Wednesday.