Colombia’s peso headed to a third weekly drop, its longest losing streak since February, amid dollar purchases by the central bank and the Treasury and reduced demand for higher yielding, emerging market assets.
The peso has fallen 0.7 percent this week to 1,820.80 per U.S. dollar at 10:58 a.m. New York time. I
The peso has fallen 0.7 percent this week to 1,820.80 per U.S. dollar at 10:58 a.m. New York time. I
t’s down 0.3 percent today from 1,816.09 yesterday.
The peso has plunged 3 percent in May, the worst performance among six Latin American currencies tracked by Bloomberg.
“Besides the external noise, we now have both the central bank intervening as well as the government,” said Camilo Perez, head analyst at Banco de Bogota SA, the country’s second biggest bank.
Finance Minister Juan Carlos Echeverry said in April that the government would create an overseas fund with as much as $1.2 billion from dollars bought in the local spot market through the end of 2011, and forgo repatriating funds from abroad for the rest of the year.
That comes on top of the central bank’s plans to buy a minimum of $20 million daily until at least June 17.
The yield on the nation’s 10 percent bonds due July 2024 rose two basis points, or 0.02 percentage point, today to 8.19 percent, according to Colombia’s stock exchange.
The security’s price fell 0.132 centavo to 114.252 centavos per peso.
The peso has plunged 3 percent in May, the worst performance among six Latin American currencies tracked by Bloomberg.
“Besides the external noise, we now have both the central bank intervening as well as the government,” said Camilo Perez, head analyst at Banco de Bogota SA, the country’s second biggest bank.
Finance Minister Juan Carlos Echeverry said in April that the government would create an overseas fund with as much as $1.2 billion from dollars bought in the local spot market through the end of 2011, and forgo repatriating funds from abroad for the rest of the year.
That comes on top of the central bank’s plans to buy a minimum of $20 million daily until at least June 17.
The yield on the nation’s 10 percent bonds due July 2024 rose two basis points, or 0.02 percentage point, today to 8.19 percent, according to Colombia’s stock exchange.
The security’s price fell 0.132 centavo to 114.252 centavos per peso.
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