Colombia’s peso on Wednesday strengthened for the first time in seven days as crude oil rose, extending the currency’s rally.
The peso increased 0.4 percent to 1,809.25 per dollar at 3 p.m. New York time, from 1,815.85 yesterday. The currency has jumped 13 percent this year, the second-best performance among all currencies tracked by Bloomberg, behind Japan’s yen.
“Colombia is still pretty much a strong commodity story, an oil story,” said Flavia Cattan-Naslausky, a strategist at RBS Securities Inc. in Stamford, Connecticut.
Oil for December delivery gained 2.9 percent to $81.77 a barrel in New York.
The central bank modified the rules on how it “intervenes” in the market last week, allowing it to more easily buy dollars.
“The focus right now is on potential controls of capital,” said Aryam Vazquez, an economist with Wells Fargo & Co. in New York. “Everybody is expecting a package of measures. The Colombians are getting hammered and they need to maintain the currency.”
The yield on the nation’s benchmark 11 percent bonds due 2020 fell 6 basis points, or 0.06 percentage point, to 6.99 percent, according to Colombia’s stock exchange. The bond’s price climbed 0.514 centavo to 127.629 centavos per peso. (Andres R. Martinez / Bloomberg)