- Risk assets rally as new ECB measures may come this year
- Currency posts biggest advance among 31 major tenders
Colombia’s peso led gains among major currencies amid speculation there was a surge in dollar flows with little supply to meet the demand.
The peso jumped 1.9 percent to 2,904.19 per dollar in Bogota for the biggest increase since Sept. 16.
The European Central Bank’s signal that it’s ready to add stimulus this year sparked demand for riskier assets around the world, with a gauge of Latin American currencies gaining 0.8 percent. Colombia’s peso outperformed amid speculation that state-controlled Ecopetrol SA will need to bring in dollars to pay for dividends, said Sergio Olarte, an economist at BTG Pactual. Camilo Perez, the head analyst at Banco de Bogota, said separately that there was speculation about flows coming from dollar financing for the government’s 4G road projects.
Ecopetrol, which must pay a portion of its dividend to the nation on Oct. 23, accumulates the cash it needs progressively and doesn’t come out in one day to buy it, according to an e-mailed reply to questions.
The currency has plunged 29 percent in the past year amid tumbling oil prices, making it the worst performer after the Russian ruble and Brazilian real among major tenders.