Colombia’s peso rose for a second day on speculation investment flows into Latin America will increase after Brazil’s foreign debt rating was raised one level by Moody’s Investors Service.
Colombia’s peso advanced as oil, the nation’s biggest export, rose on speculation central banks this week will take steps to support the global economic recovery.
Colombia’s peso bonds fell, pushing yields up the most in three weeks, after the government said it would sell an additional 2 trillion pesos ($1.06 billion) of local debt to replace revenue from the scrapped sale of power company Isagen SA.
Colombia’s peso rose the most in two weeks on speculation the Federal Reserve will take action to bolster growth in the world’s biggest economy.
Colombia’s peso is poised to snap its best monthly rally in two years, trading patterns suggest, providing relief to a government that’s counting on a weaker currency to boost the economy.
"It's not a complete volte-face, because he's still saying that the devalued exchange rate does not worry him, and that this helps the economy."
- Camilo Perez on Dec 11, 2014