- Currency’s surge leaves it at the highest in three weeks
- Government has lots of dollars to bring in this year: Cardenas
Colombia’s peso rallied as U.S. jobs data boosted the appeal of riskier assets by reducing the odds for monetary tightening this month. Finance Minister Mauricio Cardenas said the Treasury has about $2 billion left to sell in the currency market this year.
Emerging-market currencies wiped out a weekly decline after data showed U.S. employers added the fewest workers in almost six years, bolstering the case for the Federal Reserve to leave interests rates lower for longer. The rally was led by the South African rand’s 3.1 percent gain and the Colombian peso’s 2.4 percent increase.
The peso reached a three-week high and strengthened past the 3,000 level before paring gains to 3,014.13 per dollar as of 12:38 p.m. in Bogota. Cardenas said in an audio statement sent by the ministry that the peso is at a level seen as “desirable” by the government.
“A very significant number of dollars are coming into the country,” Cardenas said. “The price of oil is good, the exchange rate is at a reasonable level and the government still has a lot of dollars to bring in in the coming months.”
The government has sold about 45 percent of a total of $4 billion planned for this year, Cardenas said.
Earlier this week, the peso declined to the lowest since March after the central bank scrapped its foreign-exchange intervention mechanism on May 27.