The Colombian peso strengthened Friday as local and foreign investors bought the currency on increased confidence in the country’s economy.
The peso strengthened to COP1,919.4 to the dollar from COP1,929 on Thursday.
The peso started the session weaker as the local stock market followed the U.S. market downward after the release of bleak U.S. employment and manufacturing data, said Lucia Duarte, a currency analyst at local brokerage Valores Bancolombia SA.
“As the market recovered in the U.S., investors were more confident in Colombia,” she said.
The Colombian economy appeared to have touched bottom when the pace of contraction slowed in the second quarter.
On the bond market, the yield on the benchmark bond maturing in 2020 fell to 8.914% from 8.97% on Thursday.
In equities, the benchmark IGBC stock index ended almost unchanged at 11,152.54, while the Colcap index rose 0.3% to 1,318.92.
The preferred shares of Colombia’s largest bank Bancolombia SA fell 0.9% to COP20,180, while shares of state-controlled oil company Ecopetrol SA rose 0.2% to COP2,700.