Colombia's Peso Lead Advances Amid Dollar Inflow Speculationby
Currency strengthens to highest level in five months
Traders cite speculation cos. bringing dollars from abroad
Colombia’s peso led gains among 31 major currencies on speculation that companies are bringing in dollars from abroad to pay taxes this month.
The peso climbed 0.9 percent to 2,969.45 per U.S. dollar at the close of trading in Bogota on Monday, and reached the strongest level since Nov. 11. The currency erased earlier losses as oil, Colombia’s main export, trimmed its decline.
Traders are betting that dollar inflows are rising ahead of a corporate tax deadline next week, and as Brookfield Asset Management holds a tender offer for the remaining shares in power generator Isagen SA.
“We’re seeing lots of flows coming in,” said Juan David Ballen, a strategist at Bogota-based brokerage Casa de Bolsa SA.
Colombia’s Deputy Finance Minister Andres Escobar said the ministry “feels OK” with the peso at around to 3,000 per dollar, while oil at $40 per barrel is good for public finances, given that the budget assumed $35 per barrel price.