Colombian Peso Gains to Near Four-Month High on Investment Flows

Colombia’s peso rose near a four- month high on speculation foreign investment flows into the South American country will continue to grow as the economy expands.

The peso climbed 0.5 percent to 1,836 per U.S. dollar at 9:26 a.m. in Bogotá. 

It touched 1,832.31 on Jan. 13, its strongest intraday level since Sept. 19. 

The peso has jumped 5.5 percent so far this year, the best performance among world currencies tracked by Bloomberg.

“Investment flows continue to be strong,” said Julian Marquez, an analyst at Interbolsa SA, Colombia’s biggest brokerage. “

The upside of the local economy is that it continues to expand while other countries in Latin America have a different story to tell.”

Foreign direct investment jumped 56 percent to $14.8 billion in 2011 from a year earlier, with 82 percent going into oil and mining, according to preliminary trade balance data from the central bank. 

Foreign investment into stocks and bonds jumped almost four-fold to $989 million in the last three months of 2.011 from $263 million in the third quarter, according to the central bank data.

Colombia’s economy expanded 7.7 percent in the third quarter from a year earlier, the fastest pace since the fourth quarter of 2.006. 

The economy may grow as much as 6 percent in 2.011, the fastest pace since 2.007, according to the central bank. 

Meanwhile, Brazil’s economy shrank in the third quarter for the first time in more than two years.

The yield on the nation’s 10 percent bonds due in July 2.024 fell two basis points, or 0.02 percentage point, to 7.35 percent, according to the stock exchange. 

The bond’s price rose 0.190 centavo to 121.124.