Colombia's Peso Jumps to Strongest Level in a Week as `Confidence' Rises

Colombia’s peso rose to its strongest level in a week as an unexpected jump in pending home sales and a decrease in jobless claims in the U.S. tempered concern the economic rebound is weakening.

The currency strengthened 0.1 percent to 1,809.5 per dollar at 10:40 a.m. New York time, from 1,811.91 yesterday. It earlier reached 1,806.71, its strongest intraday value since Aug. 26. Today’s gain extends the peso’s jump this year to 13 percent, the best performance among all currencies tracked by Bloomberg.

The 5.2 percent growth in pending home sales and 6,000 decrease in initial jobless claims follow reports yesterday showing better-than-estimated expansion in U.S. and Chinese manufacturing.

“The publication of data in the U.S. is in line with what was expected,” Carlos Torres, head analyst at Medellin-based brokerage Asesores en Valores SA, said today in a telephone interview. “This generates more confidence in investors who are looking for bigger returns in emerging-market currencies, like those in Latin America.”

The yield on the benchmark 11 percent bonds due 2020 was little changed at 7.06 percent, according to Colombia’s stock exchange.

To contact the reporter on this story: Nathan Gill in Quito at ngill4@bloomberg.net

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