Colombia’s peso plunged to a 16-month low on speculation dollar inflows into the Andean nation will decline after Federal Reserve Chairman Ben S. Bernanke said monthly bond purchases could be reduced if the world’s biggest economy shows sustained growth.
The Standard & Poor’s 500 Index returned to a record as a Federal Reserve official said bond purchases should continue and Goldman Sachs Group Inc. forecast the stock rally will last at least through 2015. Treasuries rose and the yen pared earlier losses while grains and gold fell.
Yandex NV will extend gains from a 20-month high as Russia’s biggest Internet company boosts its dominance of the search market, according to Sberbank Investment Research’s Anna Lepetukhina, the most accurate analyst covering the stock.
The Canadian dollar posted its biggest loss in a year against its U.S. peer as the nation’s annual inflation rate fell in April to its slowest in more than three years, bolstering the case for relaxing monetary policy.
The Dollar Index climbed to the highest level in almost three years amid speculation the Federal Reserve is moving closer to ending its program of asset purchases on signs U.S. economic growth is improving.