Colombia Peso Drops Most in Week as European Turmoil Saps Risk
Colombia’s peso fell the most in a week as European fiscal turmoil sapped demand for riskier assets in emerging markets.
The peso slipped 0.3 percent to 1,774.60 per U.S. dollar at 10:10 a.m. in Bogota, the most since April 10. The currency was still up 9.3 percent this year in the best performance among all of the currencies tracked by Bloomberg.
“The market is focusing on uncertainty over Europe,” said Lucia Duarte, a currency strategist in Bogota at Bancolombia SA (BCOLO), the nation’s biggest bank. “That’s driving slight decreases in the peso as well as other currencies in the region.”
The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 was little changed at 7.1 percent, according to the central bank.
Global stocks declined as the Bank of Spain reported today that non-performing loans as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, from less than 1 percent in 2007.
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