Colombia Peso Drops as U.S. Economic Slowdown Damps Risk DemandChristine Jenkins
Colombia’s peso depreciated the most in a week as a report showing the U.S. economy unexpectedly contracted reduced demand for higher-yielding assets.
The peso weakened 0.2 percent to 1,777.35 per dollar at the close in Bogota, pushing this month’s decline to 0.6 percent. It fell in line with five of the six most-actively traded Latin American currencies tracked by Bloomberg.
“The bad data from the U.S. created some risk aversion, and the market turned to the dollar for refuge,” said Eduardo Bolanos, an analyst at Asesores en Valores SA brokerage in Bogota.
Gross domestic product in the U.S. dropped at a 0.1 percent annual rate in the fourth quarter, Commerce Department data showed today. The median forecast of 83 economists surveyed by Bloomberg called for a 1.1 percent gain in growth.
Yields on Colombia’s 10 percent peso-denominated debt due in 2024 rose two basis points, or 0.02 percentage point, to 5.28 percent, according to the central bank. The price fell 0.229 centavo to 139.808 centavos per peso.