Colombia’s peso fell to its lowest since June 2004 as oil, the nation’s biggest export, plunged on concern that a slowing global economy will pare demand.
The peso slid 0.9 percent to 2,694.5 per dollar at 9:11 a.m. in Bogota, extending its decline over the past 12 months to 31 percent. That’s the worst performance after the Russian ruble among 24 emerging-market currencies tracked by Bloomberg.
Oil traded at its lowest level since April after plunging 14 percent over the past four days on concern over economic stability in Europe and China and as investors avoided risky assets amid the Greek debt crisis. The peso will extend its decline should crude fall further, according to Andres Munoz, the head currency trader at Corp. Financiera Colombiana.
“The abrupt drop in oil has investors concerned,” Munoz said in a phone interview from Bogota. “With so much nervousness concerning Greece, emerging-market currencies will continue their weakening trend.”
Should the peso fall beyond 2,720 per dollar, it will weaken to 2,850, he said.