Colombian Peso Strengthens Ahead Of Central
Bank Meeting
BOGOTA (Dow Jones)--The Colombian peso
strengthened to COP1,992.90 against the
dollar on Monday, from COP1,997 at Friday's
close, ahead of this week's central bank
meeting.
Most traders and analysts expect the bank's
board to leave rates unchanged when it meets
on Friday. This, and the expectation of
increased foreign investment flows into
Colombia in 2010 is underpinning the peso's
strength, market sources said.
"Taking into account recent good news, and
the investment flows, we could see the
dollar around COP1,980 by the end of the
week," said Julian Ujueta, an analyst at
local brokerage Suma Valores.
"Friday's central bank decision will have a
big influence. If we see an aggressive
stance by the bank, there'll be a lot of
volatility. If not, the end of the year will
be quiet," Ujueta added.
On the debt markets, the yield on the
benchmark peso-denominated government bond
maturing in 2020 is at 8.087%, down from the
8.141% on Friday.
The benchmark IGBC stock index was almost
unchanged at 11540.18, up 0.02% on Friday's
close. The most traded stock was state-owned
telephone company Empresa de
Telecommunicaciones de Bogota SA (ETB.BO),
which rose 1.38%.
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