Colombian Peso Advances to Two-Week High on IMF Forecast

Colombia’s peso rose to a two-week high after the International Monetary Fund increased its forecast for global economic growth, buoying demand for higher- yielding assets.

The peso climbed 0.3 percent to 1,770.30 per U.S. dollar at 9:45 a.m. in Bogotá, from 1,776.20 yesterday. 

Earlier it touched 1,767.21, the strongest level since April 3. 

The peso has jumped 9.5 percent this year, the best performer among all currencies.

Global stocks rose after the IMF raised its forecast for global growth in 2.012 to 3.5 percent from 3.3 percent and after Spain sold more bonds than targeted, easing concern about Europe’s sovereign-debt crisis.

“The market is less adverse to risk today,” said Camilo Contreras, an analyst at Ultrabursatiles SA brokerage in Bogota. “Foreign investment into Colombia is growing at a tremendous speed.”

Foreign direct investment jumped 30 percent to $4.21 billion in the first three months of 2.012 from a year earlier, with 72 percent going into oil and mining, according to trade balance figures from the central bank. 

Foreign investment into stocks and bonds jumped 15 percent to $953 million in the same period from a year ago.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2.024 was little changed at 7.08 percent, according to the central bank. 

That’s the lowest level on a closing basis since the securities were issued in March 2.009.