Colombia Peso Declines First Day in Four on Europe Debt Concern
Colombia’s peso fell, ending a three-day winning streak, as mounting concern that the euro- region debt crisis will reduce demand for higher-yielding, emerging-market assets.
The peso slipped 0.4 percent to 1,767.71 per dollar at 9:54 a.m. New York time, from 1,760.23 on July 8. The peso has jumped 2.9 percent in the past three months, the best performance among 25 emerging-market currencies tracked by Bloomberg.
“The noise surrounding Italy is leading to declines in currencies, including the peso, as they absorb the stress in external markets,” said Andres Munoz, head currency trader at financial services holding company Corp. Financiera Colombiana in Bogota.
Austria’s Finance Minister Maria Fekter said Italy will be discussed today at the monthly gathering of euro-area finance ministers. The regular meeting of European Union President Herman van Rompuy and Commission President Jose Manuel Barroso was enlarged to include ECB President Jean-Claude Trichet, Luxembourg Prime Minister Jean-Claude Juncker and European Economic Commissioner Olli Rehn amid speculation Italy may be engulfed by the crisis and divisions on how to structure aid for Greece.
The yield on Colombia’s 10 percent bonds due July 2024 rose two basis points, or 0.02 percentage point, to 7.75 percent, according to the stock exchange. The bond’s price declined 0.141 centavo to 118.046 centavos per peso.
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