• Crude set for fourth weekly rise as U.S. fuel demand advances
  • Peso advance is 2nd-biggest among emerging-market currencies

Colombia’s peso is headed toward its best 30-day rally since 2009 amid a rebound in crude oil, the country’s biggest export.

The peso strengthened 2.1 percent to 3,160.01 per dollar Friday, the most among major emerging-market currencies after the Russian ruble. In the past month, the currency has climbed more than 8 percent, the largest increase since June 2009. Oil headed for the longest run of weekly gains since May amid signs of rising U.S. fuel demand and easing crude production.

Traders have also pushed up the value of the peso as lower interest rates in Europe and speculation that the U.S. may wait longer to raise borrowing costs boost demand for higher-yielding assets, according to Juan David Ballen, a strategist at Bogota-based brokerage Casa de Bolsa SA.

"There have been inflows into local equities and fixed income because of the lower risk aversion, and that is pressuring the dollar down versus the peso," Ballen said by phone.

In February, the iShares Colcap exchange-traded fund received $39 million in net inflows, the most for a month since September 2013.

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