The Colombian peso Tuesday depreciated to its lowest level since
December 2006 after jittery investors kept seeking refuge in
dollar-denominated assets considered safer.
The peso weakened
to 2,282.95 to the dollar compared with COP2,255.5 Monday. The peso
hasn’t close that weak since Dec. 4, 2006, when it closed at COP2,287
to the dollar.
“Uncertainty is still strong and emerging market currencies are doing
bad,” Manuel Rey, a market analyst with local brokerage Asesores en
Valores SA, said.
The peso followed the Brazilian real, which fell 4.6% on Tuesday, and other currencies in the region, Rey said.
He said local investors and off-shore funds are seeking safe-haven in assets such as U.S. Treasury bonds.
The IGBC benchmark stock index ended down 0.8% to 8,691.02 points, its
lowest level since March 14, when the index closed at 8,564.81 points.
The volume traded was COP79 billion.
The most-traded shares were Ecopetrol SA (ECOPETROL.BO), which fell 0.8% to COP2,435.
The yield on the benchmark 2020 peso-denominated government bond fell
to 12.066% from 12.088% Monday. Bond yields move inversely to prices.