Colombia Peso Rebounds From Record as Dollar Auction Level Eyed

  • Currency strengthens 1.1%, most among 31 global peers
  • Peso reached record low of 3,327.9 per dollar on Wednesday

The Colombian peso strengthened the most among global peers, rebounding from a record low yesterday that spurred speculation the central bank was close to selling dollars for the first time since announcing an intervention plan in October.

The peso rose 1.1 percent, the biggest gain in a month and the most among 31 major currencies, to 3,248.05 per dollar in Bogota. The peso touched a record intraday low of 3,327.90 on Wednesday.

The official exchange rate maintained by financial regulators reached 3,294 based on Wednesday’s trading; a level near 3,322 would have triggered the auction, according to Agustin Vera, a strategist at Global Securities brokerage in Bogota.

“Being so close, some investors may have preferred to take profit,” Vera said.

The central bank has said it will auction $500 million worth of call options when the exchange rate is 7 percent weaker or more than its 20-day moving average.

The currency tumbled the most since Aug. 24 on Monday amid a rout in oil, which accounts for about 40 percent of Colombia’s exports.

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