The Colombian peso weakened to levels not seen since November 2006
following the Mexican peso and the Brazilian real, which slide as world
markets go deeper in turmoil.
The Colombian peso depreciated to 2,323.7 to the dollar as of 9:36
a.m., local time Wednesday. The peso hadn’t closed that weak since Nov.
27, 2006, when it closed at COP2,329 to the dollar.
“The peso
here is following what happens in Mexico and Brazil, though the move is
not that strong,” Felipe Munoz, who manages a fund of local bonds with
local brokerage Corredores Asociados, said.
In the last 30 days, the Colombian peso has lost 11% of its worth, while the real is down 28%.
Munoz said the peso is holding firmer than the real because the
proportion of the Colombian capital markets in the hands of foreigners
is much smaller than in Brazil.
The Colombian IGBC stock index was down 1.6% to 8,554.51 points, while
the yield on the benchmark peso-denominated government bond maturing in
2020 was up to 12.24% from 12.066% Tuesday. (Dow Jones)