Colombia’s peso climbed to a six- month high on increased foreign direct investment flows and speculation funds from abroad will continue to flow into the South American country.
The peso rose 0.5 percent to 1,790.32 per U.S. dollar at 11:16 a.m. New York time, from 1,799.01 yesterday.
Earlier it touched 1,788.84, the strongest level since Oct. 13.
The currency has jumped 4.7 percent in the past month, the second- best performance after the Brazilian real among 25 emerging- market currencies.
“Strong FDI flows have been coming in, especially in the last two to three weeks,” said Camilo Perez, head analyst at Banco de Bogota SA, the country’s second-biggest bank.
The higher dollar inflows have increased the dollar cash positions of financial intermediaries, according to Perez.
Colombian regulations don’t allow banks to have negative dollar positions.
“You don’t have that technical constraint that was helping limit gains in the peso,” he said.
The yield on the nation’s 10 percent bonds due July 2024 was little changed at 8.27 percent, according to Colombia’s stock exchange.
The bond’s price fell 0.035 centavo to 113.592 centavos per peso.
The peso rose 0.5 percent to 1,790.32 per U.S. dollar at 11:16 a.m. New York time, from 1,799.01 yesterday.
Earlier it touched 1,788.84, the strongest level since Oct. 13.
The currency has jumped 4.7 percent in the past month, the second- best performance after the Brazilian real among 25 emerging- market currencies.
“Strong FDI flows have been coming in, especially in the last two to three weeks,” said Camilo Perez, head analyst at Banco de Bogota SA, the country’s second-biggest bank.
The higher dollar inflows have increased the dollar cash positions of financial intermediaries, according to Perez.
Colombian regulations don’t allow banks to have negative dollar positions.
“You don’t have that technical constraint that was helping limit gains in the peso,” he said.
The yield on the nation’s 10 percent bonds due July 2024 was little changed at 8.27 percent, according to Colombia’s stock exchange.
The bond’s price fell 0.035 centavo to 113.592 centavos per peso.
Posts
No comments:
Post a Comment
Thanks for your visit, hope you enjoy the content, we expect to see you again soon.