- Peso rallies most among 150 currencies tracked by Bloomberg
- Currency had tumbled in previous weeks on Fitch outlook change
The Colombian peso strengthened the most among currencies tracked by Bloomberg as it extended its rebound following losses in the previous two weeks that helped push it to a five-month low.
The peso rose 1.5 percent to 3,038.18 per dollar as of 12:55 p.m. in Bogota, on course for a 1.1 percent gain on the week. The currency fell 3.9 percent last week, the most since November after Fitch Ratings changed its outlook on the country rating to negative.
The peso climbed after weakening to a five-month low on Wednesday. Its rally in the past two days ended the steepest decline in the region. Other Latin American currencies rose or were little changed on Friday, with gains of no more than 0.6 percent, including the Mexican peso and the Brazilian real.
The fact that other currencies in the region are practically stable “suggests that today’s move can be explained by local market factors,” Camilo Perez, an analyst at Banco de Bogota, wrote Friday in a note to clients. “At the same time, the fact that the Colombian peso was one of the most sold currencies in previous sessions could also explain why it recovered more.”