Colombian Peso Falls to Record Low as Bonds Drop on CPI Surprise
- Inflation exceeds all forecasts for fourth straight month
- Central bank forecast to raise interest rates on Dec. 18
This article is for subscribers only.
The Colombian peso sank to a record low on a worsening rout in crude oil, while local bonds declined as above-forecast inflation spurred bets on higher borrowing costs.
The peso depreciated 2 percent to 3,264.87 per U.S. dollar at 9:49 a.m. in Bogota, the most in emerging markets, after earlier touching an unprecedented 3,271.71. The yield on government bonds due 2024 rose 0.1 percentage point to 8.29 percent, the highest since 2011.