Kirk LaughlinSource: Bloomberg
Colombia’s peso rose from its lowest level this year after reports on U.S. jobs growth and service industries topped estimates, tempering concern about an economic slowdown in the world’s biggest economy.
The peso rose for the first day in six, gaining 1 percent to 1965 per U.S. dollar at 10:58 a.m. New York time, from 1,984.60 yesterday. Yesterday’s closing price was its weakest level since Dec. 28.
“The numbers coming out of the U.S. are motivating local investors to come into the market and buy,” said Daniel Lozano, an analyst at Serfinco SA brokerage in Bogota.
The Institute for Supply Management’s index of non- manufacturing businesses decreased to 53 in September from 53.3 a month earlier, and above the median estimate for a drop to 52.8 in a Bloomberg survey. A reading above 50 signals expansion. Separately, ADP Employer Services said companies in the U.S. added 91,000 jobs in September, more than the median forecast for a 75,000 increase in a Bloomberg survey.
The yield on Colombia’s benchmark 10 percent bonds due in July 2024 fell five basis points, or 0.05 percentage point, to 7.65 percent. The bond’s price rose 0.556 centavo to 118.811 centavos per peso.
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