Colombia Peso Touches Three-Week High as China Growth Buoys Risk
Colombia’s peso touched a three-week high as a report showing an increase in Chinese factory output boosted demand for higher-yielding assets and helped drive up the price of oil, the Andean nation’s top export.
The currency appreciated as much as 0.3 percent to 1,810.18 per dollar in intraday trading, the strongest level since Nov. 8. It closed little changed at 1,815.30. The peso has rallied 6.8 percent this year.
“There’s a positive tone in international markets,” said Camilo Perez, the head analyst at Banco de Bogota SA. “People have been worried about growth, and the data from China was somewhat better, so that encourages optimism.”
China’s official Purchasing Managers’ Index increased to 50.6 in November, while a private gauge of manufacturing climbed to 50.5, separate reports showed. A reading above 50 indicates expansion. Oil rose 0.2 percent to $89.09 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 19.
The yield on Colombia’s 9.25 percent peso-denominated bonds due in May 2014 was little changed at 4.95 percent, according to the central bank.
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