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The Brazilian real and Colombia’s peso moved in tandem Monday as both closed stronger.
The real was buoyed by news of increased investment from foreign investors and finished the day at BRL1.842 to the dollar. It had closed at BRL1.857 on Friday.
Meanwhile, the Colombian peso strengthened considerably against the dollar on Monday, closing at 1908.50 compared to 1,920.00 on Thursday. Banks were closed in Colombia on Friday for a public holiday.
Brazil’s burgeoning stock market has attracted the interest of investors worldwide this year and this growth is expected to continue for at least the rest of the year.
This positive sentiment seem to be having a knock-on effect in Colombia. However, analysts say the continued strengthening of the peso may well hinge on whether the Colombian government decides to raise interest rates from 9% to 9.25% this week.
Meanwhile, Mexico’s peso was also on the up on Monday, strengthening to 10.7515 against the dollar, compared to 10.7805 on Friday.
It is a busy week in Mexico with the Bank of Mexico publishing its inflation report for early July on Tuesday, and trade numbers for June being released later in the week.
On top of this, second-quarter earnings will be released for many of Mexico’s big companies this week.
In Argentina, the peso went against the trend as it slid to a four-year low against the US dollar. At close, the dollar bought 3.1275 Argentine pesos, compared to 3.1200 on Friday.
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Posted on Jul-30-2007
