Colombia’s peso rose to a nine month high amid higher oil prices and as gains in U.S. equity markets fueled demand for higher demand for higher-yielding, emerging-market assets, Bloomberg reports.
The peso advanced 0.3% to 1,862.40 per U.S. dollar at 4.47PM New York time, from 1,867.40 yesterday. That’s the strongest level since October 16. The currency has jumped 9.7% this year versus the dollar, the best performance among world currencies tracked by Bloomberg.
“Risk aversion has dropped, so investors are back in emerging markets, seeking higher returns,” said Camilo Santana, an analyst at Bogota-based brockerage Cia. de Professionales de Bolsa. “We’re also seeing Colombia’s exports rise, driven by oil.”
Oil, Colombia’s main export, climbed as much as 3.7% today to $79.42 a barrel.
The yield on Colombia’s benchmark 11% bonds due July 2020 rose nine basis points, or 0.09 percentage point, to 7.55%, according to Colombia’s stock exchange. The bond’s price dropped 0.712 centavo to 123.641 centavos per peso.
