Colombian Peso highest level since 1999

DodgerDogs says on Feb 27, 2008, 14:13:

They say it could break the 1,800 level in March or April

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

Simon says on Feb 27, 2008, 14:13:

GO GO PESO!!!!!!!!!

HERE'S SIMON!!!!

goin_south says on Feb 27, 2008, 14:14:

the worst fkn news I've heard all day ;-((

and, thank you.

Simon says on Feb 27, 2008, 14:16:

"the worst fkn news I've heard all day ;-(("


How about the Euro reaching a historic high against the dollar?

HERE'S SIMON!!!!

goin_south says on Feb 27, 2008, 14:17:

not planning to go to Europe anytime soon.

and, thank you.

DodgerDogs says on Feb 27, 2008, 14:17:

Here isi some more knows, and more tomorrow as the Fed today announced more rate cuts.
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Greenback Declines To Fresh Multi-year Lows Against Brazilian Real And Colombian Peso



(RTTNews) - The US dollar continued its downtrend against its Latin American counterparts on Wednesday's New York deals. The greenback fell to fresh multi-year lows against the Brazilian real and the Colombian peso and reached an 8-day low versus the Chilean unit. The dollar dropped to a 3½-month low against the Mexican peso at afternoon deals in New York.

On the economic front on Wednesday, the US Department of Commerce released its report on durable goods orders for the month of January, indicating that durable goods orders fell 5.3% following a revised 4.4% increase in December. Economists were expecting orders to decrease by 4% compared to the 5.2% increase originally reported for the previous month.

Also, new home sales fell to a nearly 13 year low of 2.8% to an annual rate of 588,000 units in January from the revised December rate of 605,000 units. Economists expected sales to fall to a 600,000 unit rate from the 604,000 unit rate, originally reported for the previous month.

The US Federal Reserve Chairman Ben Bernanke in his testimony on the monetary policy to a congressional committee today, pointed out to the possibility of a slowing economy and rising inflation. The speech has some clear indications of a possible interest rate cut once again at its next meeting.

The dollar plunged into a new multi-year low of 1.6630 against the Brazilian real by about 12:50 pm ET, compared to yesterday's close of 1.6865. According to a data released earlier this morning, Brazil posted a budget surplus of BRL 18.66 billion, reversing December's deficit of BRL 24.02 billion. The dollar-real pair regained a few pips thereafter and as of now, it is worth 1.6690 versus the Brazilian real.

The dollar hit as high as 10.7425 against the Mexican peso during afternoon New York deals on Wednesday, but dropped to a 3½-month low of 10.7137 by about 2:55 pm ET. As of now, the pair is worth 10.7178.

The US dollar also plummeted to a new multi-year low of 1846.30 against the Colombian local currency at about 12:30 pm ET Wednesday, compared to yesterday's close of 1870.80. As of now, the dollar-Colombian peso pair is quoted at 1850.20.

The dollar slipped to an 8-day low of 462.45 against the Chilean peso during early New York trading Wednesday, compared to yesterday's close of 465.75. After falling to multi-day low, the dollar bounced back but failed to maintain the momentum due to poor economic outputs from U.S. later in the morning. As of now, the dollar-Chilean peso pair is worth 462.55.

Crude oil moved lower on Wednesday but remained above $100 as traders considered another rise in weekly inventories.

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

DodgerDogs says on Feb 27, 2008, 14:19:

This is hurting most people sendning money home to Colombia, and also hurting those living here on US pensions and Social Security.... I wish no one financial troubles.

Our lives begin to end the day we become silent about things that matter.Martin Luther King:

goin_south says on Feb 27, 2008, 14:19:

doesn't the us dollar always take a hit, in the last year of a presidential term, especially a second term...
I mean, he's been paddin his pockets, not concerned about hours... ours.. time.. nothing to him.. he's a cooked goose.

and, thank you.

Simon says on Feb 27, 2008, 14:22:

Yeah, but it's also helping Colombian importers and Colombian tourists in the US.

HERE'S SIMON!!!!

jh816 says on Feb 27, 2008, 14:34:

If the Col government could stop breast-feeding some of the weak companies in Colombia and allow the import tariffs to come down, inflation would plummet with the cost of some staple products like dairy and rice(staple products).

Dairy products face an 18% tariff and rice is charged an 80% tariff. Lowering the tariffs on these or allowing more imports would bring the price of the canasta (and inflation) down. The central bank doesn't need to raise rates and quell growth, they need to allow Colombians to buy products at global market prices.

wendell13 says on Feb 27, 2008, 14:49:

at the rate it is going it will break 1800 in a week or so

RealEstateCOL says on Feb 27, 2008, 14:52:

And the Euro closed at 1.51 dollars for 1 Euro

donmia says on Feb 27, 2008, 15:00:

it's the stock market that takes a hit in the last year of an 8-year presidency. but it always hits a "surge" when the new president comes in, provided it is the opposite party.

I think it might have something to do with exhausting the ideas the pres was elected to enact. not any measure of how good either side's ideas might be.

rocinante says on Feb 27, 2008, 15:04:

Yield differential. Sometimes matter more than the economies in play. Who's byuing calls on the COP?

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

wendell13 says on Feb 27, 2008, 15:06:

where would you buy them at? If there is a market I bet the spreads are horrendous

bickerss says on Feb 27, 2008, 15:12:

a post from an Australian paper on the low USD

''Oil has gone up simply because it has become more affordable to the Europeans and countries whose currency is not is tied to US dollars. The amazing thing about the drop in USD is that it is actually the preferred longer term position of the US central bank and the US government. This is engineered to make the US economy stronger domestically. Why buy crappy chinese or indian goods when American goods are nearly as cheap. The Fed used the same strategy to cripple the Japanese and German economies twenty years ago....how we forget. Never underestimate the intellectual strength of the Americans. They have just leveled the playing field against the Europeans and the Chinese. Everything exported by the Chinese and europeans to USA has just gone up by 30% in a short time so watch the Yanks come back in a few years. You have to admire the Fed's guts in willingness to create a macro change."""

jonas says on Feb 27, 2008, 16:32:

to make such a comeback I guess Americans might have to start learning how to save and quit spending other people´s dinero. Correct me if I am wrong but I believe the US needs about 6 billion foreign bucks a day to stay afloat.

What I have, I do not want to lose, but Where I am I do not want to stay, but those I love, I do not want to leave, but those I know I no longer want to see, but Where I die, I do not want to go;I want to stay where I have never been

rocinante says on Feb 28, 2008, 06:35:

jonas you are not wrong. Also an extra handfull of trillion of dollars to buy back Government bonds from foreign entities (CHINA!0) - not a problem with taxes; stop printing money, tighten the belt, get out of the war - will take about 4-8 years depending on raising tax rates and juggling numbers.

Will the dollar ever see 2100 Pesos again? I don't think so.

Peso to hit 1700 in 3 weeks? Ray?

This rise, among many things, is a direct correlation to the EXPECTED increase in yield differential coming - when it's news the exchange rate will already be reflected for the most part. Someone posted about news in a nother thread....

US Fed to cut a quarter, Colonmbia to raise a quarter. Just my speculation of course.

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Peso 1400 by November" Feb 5, 2008

RAAAY says on Feb 28, 2008, 06:41:

..........1700 in 3 weeks...................seems very quick.................I would'nt rule out high 1700's.......................maybe 1799...................

The upcoming US expected Fed cut is already priced into the Peso.........most likely accounting for some part of the reason for it's current 1850' ish.....................Colombia raising a further quarter point will create further inflows...............3 weeks.....1799.........



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.........Its useless to argue with ignorance