Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Colombian Peso Falls on European Debt Concern, Fed Statement

Don't Miss Out —
Follow us on:

Dec. 14 (Bloomberg) -- Colombia’s peso fell the most in two weeks as Europe struggled to contain its debt crisis and the Federal Reserve refrained from taking measures to bolster the U.S. economy, hurting appetite for higher-yielding assets.

The currency dropped 0.4 percent to 1,938.08 per U.S. dollar, from 1,929.55 yesterday. The currency has slipped 1.2 percent in the past month.

German Chancellor Angela Merkel said there’s no easy and fast solution to the euro-region sovereign debt crisis. Merkel, speaking to lawmakers in the German parliament, reiterated her opposition to increasing the upper limit of the European Stability Mechanism fund. The Fed said yesterday the U.S. economy is maintaining its expansion even as global growth slows, disappointing some investors who had anticipated additional policy easing.

“Risk aversion is leading currencies in Latin America to adjust lower,” said Daniel Lozano, an analyst at Serfinco SA brokerage in Bogota.

RBS Securities Inc. recommended today that investors take advantage of a “seasonally weak period” for the peso, anticipating that it may gain in early 2012.

This is “a good entry point for positioning ahead of renewed appreciation pressures early next year,” RBS said in a note to investors.

The yield on Colombia’s 10 percent bonds due in July 2024 rose one basis point, or 0.01 percentage point, to 7.60 percent, according to the stock exchange. The bond’s price fell 0.047 centavo to 118.996 centavos per peso.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.