Colombia’s peso advanced to its highest level since august 2008 amid rising foreign direct investment into the oil and mining industries and as companies repatriated profits from abroad to pay taxes this month.
The peso climbed 0.5 percent to 1,780.27 per U.S. dollar at 3:07 p.m. New York time, from 1,788.45 yesterday.
Earlier it touched 1,776.20, the strongest level since August 2008.
The currency has jumped 5.1 percent so far this month, the best performance among world currencies tracked by Bloomberg.
“Both FDI and portfolio investment flows have been rising compared to what we had last year,” said David Aldana, head analyst at brokerage Ultrabursatiles SA in Bogota.
“The peso has also been helped by companies bringing in dollars to pay taxes, which is something that will continue into next week.”
Foreign direct investment rose to $3.23 billion in the year through March, with 86 percent going into oil and mining, according to trade balance figures from the central bank.
That compares to $2.17 billion in the first three months of 2010.
Portfolio inflows have risen to $825 million in the year through March, compared to a net decline of $21 million a year ago, according to the central bank.
Companies are scheduled to pay taxes in Colombia between April 8 and April 25.
The yield on the nation’s 10 percent bonds due July 2024 rose three basis points, or 0.03 percentage point, to 8.25 percent, according to Colombia’s stock exchange.
The bond’s price declined 0.244 centavo to 113.738 centavos per peso.
Colombian markets are closed April 21-22 for Easter holiday.
The peso climbed 0.5 percent to 1,780.27 per U.S. dollar at 3:07 p.m. New York time, from 1,788.45 yesterday.
Earlier it touched 1,776.20, the strongest level since August 2008.
The currency has jumped 5.1 percent so far this month, the best performance among world currencies tracked by Bloomberg.
“Both FDI and portfolio investment flows have been rising compared to what we had last year,” said David Aldana, head analyst at brokerage Ultrabursatiles SA in Bogota.
“The peso has also been helped by companies bringing in dollars to pay taxes, which is something that will continue into next week.”
Foreign direct investment rose to $3.23 billion in the year through March, with 86 percent going into oil and mining, according to trade balance figures from the central bank.
That compares to $2.17 billion in the first three months of 2010.
Portfolio inflows have risen to $825 million in the year through March, compared to a net decline of $21 million a year ago, according to the central bank.
Companies are scheduled to pay taxes in Colombia between April 8 and April 25.
The yield on the nation’s 10 percent bonds due July 2024 rose three basis points, or 0.03 percentage point, to 8.25 percent, according to Colombia’s stock exchange.
The bond’s price declined 0.244 centavo to 113.738 centavos per peso.
Colombian markets are closed April 21-22 for Easter holiday.
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