Peso drops most in two weeks

Colombia’s peso fell the most in
two weeks after an unexpected drop in U.S. retail sales
heightened concern that a slump in the world’s biggest economy
will stifle demand for exports

The peso slumped 1 percent to 2,409.55 per U.S. dollar at
9:38 a.m. New York time, from 2,384.40 yesterday. The peso has
weakened 6.6 percent this year, the steepest decline among the
six most-traded currencies in Latin America.

Retail sales in the U.S. slid 1.1 percent last month as job
losses forced consumers to pull back, the Commerce Department
said today. The U.S. is Colombia’s biggest trading partner.

The yield on Colombia’s 11 percent bonds due in July 2020
fell four basis points, or 0.04 percentage point, to 9.27
percent, according to the country’s stock exchange. The price
rose 0.293 centavo to 111.695 centavos per peso. (Bloomberg)

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