Colombia Peso Rises to Nine-Month High on Price of Oil, Increased Demand

Colombia’s peso rose to a nine-monthhigh amid higher oil prices and as gains in U.S. equity marketsfueled demand for higher-yielding, emerging-market assets.

The peso advanced 0.3 percent to 1,862.40 per U.S. dollarat 4:47 p.m. New York time, from 1,867.40 yesterday. That’s thestrongest level since Oct. 16. The currency has jumped 9.7percent this year versus the dollar, the best performance amongworld currencies tracked by Bloomberg.

“Risk aversion has dropped, so investors are back inemerging markets, seeking higher returns,” said Camilo Santana,an analyst at Bogota-based brokerage Cia. de Profesionales deBolsa. “We’re also seeing Colombia’s exports rise, driven byoil.”

Oil, Colombia’s main export, climbed as much as 3.7 percenttoday to $79.42 a barrel.

The yield on Colombia’s benchmark 11 percent bonds due July2020 rose nine basis points, or 0.09 percentage point, to 7.55percent, according to Colombia’s stock exchange. The bond’sprice dropped 0.712 centavo to 123.641 centavos per peso.