Colombian Peso Rallies Toward Key Technical Level as Oil Climbs

  • Oil, country’s main export, rallied Monday as local mkt closed
  • Crude continued climb to a one-month high on Tuesday

Colombia’s peso posted the biggest gain in emerging markets as trading resumed after a holiday and as oil, the country’s principal export, gained to a one-month high.

The peso strengthened 0.9 percent to 2,902.25 per dollar in Bogota, putting Colombia’s currency within 1.1 percent of the key technical level near 2,870. The currency has repeatedly approached that mark in recent months and then retreated.

The recovery in crude prices this year has sent the peso up 9.4 percent, making it the fourth-best performer among 24 emerging-market currencies tracked by Bloomberg after three straight years of losses. Crude, which accounts for about 40 percent of Colombia’s exports, climbed to a one-month high amid speculation that OPEC talks next month could result in an output freeze. Futures added as much as 1.9 percent in New York to $46.60 a barrel, following a 2.8 percent gain on Monday.

The peso strengthened past 2,870 on Friday for the first time since June, before reversing course and finishing lower for the day.

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