Colombia Peso Posts Biggest Weekly Gain in 2013; Bonds Drop

Colombia’s peso posted its biggest weekly gain this year after a surprise drop in the U.S. unemployment rate boosted demand for higher-yielding assets.

The currency climbed 0.1 percent to 1,801.50 per U.S. dollar at the close in Bogota, extending its advance this week to 0.6 percent.

Five of the six most-traded Latin American currencies gained today after a report showed U.S. job growth surged last month. Payrolls rose 236,000, exceeding the 165,000 median forecast of 90 economists surveyed by Bloomberg. The jobless rate dropped to 7.7 percent, the lowest since December 2008.

“The jobs data came out very positive, and the market has been trading on that,” Diego Usme, an analyst at brokerage Ultrabursatiles SA, said in a telephone interview from Bogota. “It increases risk appetite.”

Yields on peso bonds due in 2024 rose two basis points, or 0.02 percentage point, to 4.89 percent, according to the central bank.

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