Colombia’s peso rose for a ninth straight day, its longest winning streak in two years, amid speculation foreign direct investment into oil and mining will boost dollar inflows into the South American nation.
The peso gained 0.4% to 1,903.9 per U.S. dollar at 10:54 AM New York time, from 1,911.15 yesterday. It earlier climbed to 1,901.25, its strongest level since March 18. The currency gained for eleven straight days during the period ended June 9, 2008. The peso has jumped 7.4% this year, the best performance among world currencies tracked by Bloomberg.
“There are big oil flows coming into Colombia,” said Andres Munoz, head currency trader at Corporacion Financiera Colombiana SA in Bogota. He forecasts the currency will trade between 1,885 and 1,895 in the “short term.”
Colombia will attract about $10 billion in foreign direct investment this year, Trade Minister Luis Guillermo Plata has said. The nation received $7.2 billion of foreign direct investment in 2009, after a record $10.6 billion the previous year, according to the Central Bank.
The yield on Colombia’s benchmark 11% bonds due July 2020 rose two basis points, or 0.02 percentage point, to 8.01%, according to Colombia’s stock exchange. The bond’s price fell 0.118 centavo to 120.187 centavos per peso.