Colombia’s peso rose the most in a year as signs that manufacturing is expanding in the U.S. and China boosted demand for higher-yielding assets.
The peso jumped 1.2 percent to 1,906.98 per U.S. dollar, from 1,930 yesterday. That’s the biggest gain since Jan. 6, 2011. The peso has dropped 0.7 percent in the past 12 months.
A gauge of U.S. manufacturing rose to 53.9 in December from 52.7 a month earlier, according to a report from the Institute for Supply Management today. Fifty is the dividing line between growth and contraction, and economists surveyed by Bloomberg projected the measure would climb to 53.5. In China and India, manufacturing expanded last month, indicating Asia’s fastest-growing major economies have so far withstood the fallout from Europe’s sovereign debt crisis.
“The good data is having a positive impact on market sentiment,” said Nicolas Bernal, an analyst at Ultrabursatiles SA in Bogota. Trading volume remains low in Colombian markets because of the year-end holidays, leading to bigger-than-usual swings in prices today, he said.
The peso earlier touched 1,904.12, its strongest level since Nov. 17.
“It will take much more than a few positive numbers” for the peso to strengthen beyond 1,900 per dollar, Bernal said.
The yield on the nation’s 10 percent bonds due in July 2024 fell four basis points, or 0.04 percentage point, to 7.58 percent, according to the stock exchange. The bond’s price rose 0.356 centavo to 119.121 centavos per peso.