Colombian Peso Rises to Two-Week High as IMF Forecast Buoys Risk

Colombia’s peso rose to a two-week high after the International Monetary Fund increased its forecast for global economic growth, spurring demand for higher-yielding assets.

The peso climbed 0.4 percent to 1,770 per U.S. dollar, from 1,776.20 yesterday. Earlier it touched 1,765.80, the strongest level since April 3. The currency has rallied 9.5 percent this year, the best performance among all currencies tracked by Bloomberg.

“The market is less adverse to risk today,” said Camilo Contreras, an analyst at Ultrabursatiles SA brokerage in Bogota. “Foreign investment into Colombia is growing at a tremendous speed.”

Foreign direct investment jumped 30 percent to $4.21 billion in the first three months of 2012 from a year earlier, with 72 percent going into oil and mining, according to trade-balance figures from the central bank. Foreign investment into stocks and bonds jumped 15 percent to $953 million in the same period from a year ago.

Yields on benchmark government bonds rose today from the lowest level since they were issued more than three years ago.

The yield on Colombia’s 10 percent peso-denominated debt due in July 2024 rose three basis points, or 0.03 percentage point, to 7.11 percent, according to the central bank. It closed yesterday and April 13 at 7.08 percent, the lowest level since the securities were issued in March 2009.

Global stocks rose today after the IMF raised its forecast for global growth in 2012 to 3.5 percent from 3.3 percent and after Spain sold more bills than targeted, easing concern Europe’s sovereign-debt crisis is getting worse.