Colombia Peso Gains to 2-Month High on Bets Dollar Inflows Riseby
Peso's gain in past week most in emerging markets after Brazil
Brookfield plan to buy oustanding shares boosts dollar inflows
Colombia’s peso strengthened to a two-month high amid speculation that more dollars are flowing into the South American country.
The peso climbed 0.4 percent to 3,193.98 per U.S. dollar at 1:29 p.m. in Bogota and reached the strongest level since Jan. 4 on an intra-day basis. Over the past week, it has gained 3.8 percent, the best performer among emerging market peers after the Brazilian real.
Traders are betting that dollar inflows are rising as Brookfield Asset Management is expected to start a tender offer for the remaining shares in Isagen SA after it bought control from the government in January. Colombia has also said it will sell dollars generated by the sale as needed.
“Really the market is seeing flows related to infrastructure,” said Daniel Velandia, the head analyst at Credicorp Capital’s Colombia unit in Bogota.