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Colombian Peso Falls to a One-Month Low; Chilean Peso Gains
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By Drew Benson

Dec. 9 (Bloomberg) -- Colombia’s peso slid to the weakest level in a month as a cut in Spain’s credit outlook by Standard & Poor’s sapped demand for higher-yielding, emerging-market assets.

The peso fell 1 percent to 2,020.97 per dollar at 2:34 p.m. New York time, from 2,001.13 yesterday. Earlier it touched 2,021.65, its weakest since Nov. 3.

“The main driver continues to be the external context, which is generating nervousness,” said Camilo Perez, an analyst at Banco de Bogota SA, the country’s second-biggest bank.

S&P said it revised Spain’s outlook to negative from stable, citing concern about its public finances.

The yield on Colombia’s 11 percent benchmark bonds due in July 2020 slid three basis points, or 0.03 percentage point, to 8.13 percent, according to Colombia’s stock exchange.

In Chile, the peso climbed 0.9 percent to 500.6 per dollar from 505.22 yesterday. The yield for a basket of Chile’s five- year peso bonds in inflation-linked currency units, called unidades de fomento, rose five basis points to 2.86 percent, according to Bloomberg composite prices.

Argentina’s peso was little changed at 3.8033 per dollar, from 3.8041 on Dec. 7. Markets were closed in Argentina yesterday. The yield on the nation’s 5.83 percent peso bonds due in 2033 slid two basis points to 10.83 percent, according to Citibank Argentina.

Peru’s sol slid 0.4 percent to 2.8765 per dollar, from 2.8646 yesterday. The yield on Peru’s 8.6 percent sol- denominated bond due August 2017 rose four basis points to 4.97 percent, according to Citigroup Inc.’s local unit.

Venezuela’s bolivar climbed 1.7 percent to 5.8 per dollar in the parallel market, traders said. Venezuelans buy dollars in the unregulated market when they can’t get government authorization to purchase them at the official exchange rate of 2.15 per dollar.

To contact the reporters on this story: Drew Benson in Buenos Aires at [e-mail];
Last Updated: December 9, 2009 14:48 EST