Colombian currency loses against greenback

Posted On: February 11, 2013

The monetary unit of Colombia pushed to its highest value in seven days on the foreign exchange on Monday amid conjecture suggesting gains for oil and mining companies' capital inflows, according to Bloomberg.

The Colombian peso pushed to its highest value since February 1 following gains of as much as 0.2 percent. Also driving the monetary unit higher on Monday was the belief that recent losses have been overdone.

"Flows continue to come into emerging markets, and oil companies will need to bring dollars into the country as they move ahead with their investment plans," head analyst Wilson Tovar with brokerage Acciones y Valores in Bogota told the news source on Monday. "The peso's decline was overdone. It will be difficult to see it weaken beyond 1,800 even with the intervention."

Thus far this year the peso has lost roughly 1 percent of its value against the U.S. dollar as the government and the nation's central bank indicated more purchases of the world's reserve currency are in store.

Reuters reports the nation's oil minister told a conference last week that generation this year will average roughly 1.1 million barrels per day.

Category: Industry News


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