Peso strengthens below 2,200

The Colombian peso gained 1% against the dollar Wednesday morning, while the IGBC stock
index climbed 1.5% in early trading amid appetite for Colombian assets.

The Colombian peso traded at 2,195.75 to the dollar as of 11:00 a.m.
from COP2,217 on Tuesday, while the IGBC stock index was up 1.5% to
9359.68 points earlier Wednesday.

The last time the peso ended below COP2,200 was on Jan. 6, when it closed at COP2,191.50.

Nicolas Uribe, foreign exchange trader at local brokerage Correval,
said Colombian assets are tracking U.S. stocks that climb as oil prices
continued to push higher and banks raised more capital.

“The Colombian peso can break the COP2,165 level amid important and
strong players that are selling greenbacks,” said Uribe in a research
note, adding that he expects a volatility of around COP30 to COP35 per
dollar.

Meanwhile, the yield on the benchmark local peso-denominated bond,
known as TES, maturing in 2020 traded at 8.529% from 8.566% on
Tuesday’s closing mark. (Dow Jones)

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