Colombian Peso rises ahead of statement by Fed

08-12-2009 11:00

The Colombian Peso rose as a result of investors speculating that American Federal Reserve policy makers could announce that economic growth will return earlier than estimated. Colombia’s Peso climbed 1.3%, reaching 2,019.4 per US Dollar at 12:06 p.m. in New York, in comparison with yesterday’s 2,045.28.

Positive results Peso

Diego Galvan, a trader at the Bogota-based Corredores Asociados SA, stated: “Investors are buying short peso positions in anticipation of the decision by the Federal Reserve. The positive results by the Peso are comparable with those of the Brazilian Real and Mexico’s Peso, which are affected by the correction in the American equity market.”

Fed’s statement

The S&P 500 rose 1.3%, following Tuesday’s fall. Stocks were approximately 15% higher in comparison with a regular trading session in Bogota, ahead of the Federal Reserve’s statement that will boost worldwide markets, according to Galvan. The Federal Open Market Committee (FOMC) will release an announcement today at approximately 2:15 p.m., ending a two-day conference in Washington.

Colombia’s Peso

The Colombian Peso also went up as a result of the Colombian oil, one of the country’s main export products, rising and surpassing $70 per barrel. The return on Colombia’s 11% bonds due in July 2020 dropped 0.01% to 9.12%, while the price reached 112.661 Centavos a Peso, climbing 0.07 Centavo.

Chilean Peso

The Chilean Peso recovered after five days of losing, as it gained 0.4% today, reaching 545.44 a US Dollar, in comparison with Tuesday’s 547.7. The return on Chile’s 10-year Peso bonds in inflation-linked ‘unidades de fomento’, a Chilean unit of account, remained unchanged at 2.93%.

Argentina

The Argentine Peso moved little at 3.8301 a Dollar, in comparison with Tuesday’s 3.8304. Argentina’s inflation-linked Peso bond due in 2033 dropped 0.31% to 13.03%, reported Citigroup Inc. Argentina.