Colombian Peso Strengthens Following Brazil's Real; Stks Up

BOGOTA -- The Colombian peso strengthened Wednesday, following the Brazilian real, which reached a 12-month high on a ratings upgrade of Brazilian debt.

The Colombian peso strengthened to 1,917 pesos to the dollar on Wednesday, from COP1,920 on Tuesday. The peso hit its strongest level since Aug. 27, 2008.

"The peso is following a global trend," German Grijalba, a bond trader with local bank Banco Popular SA, said. "The peso will keep approaching COP1,900 but I don't think there is much more room for appreciation," he added.

The peso has appreciated 18% so far this year.

The Colombian benchmark IGBC stock index rose 0.7%, to 10,984.78 points, its highest level since Dec. 3, 2007.

The most heavily traded stock was state-controlled telephone company Empresa de Telecomunicaciones de Bogota SA (ETB.BO), which gained 6.5%, to COP1,070, after falling 14% on the previous day.

Shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) fell 0.6%, to COP2,695, following a 3.9% decline of light, sweet crude oil for delivery in November on the New York Mercantile Exchange.

The yield on the benchmark TES bond maturing in 2020 fell to 9.199% from 9.235% on Tuesday.