COP: Rising Risks to Positive Fundamentals

Following a break out of its appreciatory trend in late September, the Colombian peso has continued to depreciate, bringing the unit close to its October 2011 low of COP1985.0/US$. Due to a weak technical picture, heightened global risk aversion and the end of the financial year, which has historically presaged further downside for the unit as Colombian-based multi-nationals repatriate their profits, increasing domestic demand for dollars, we are revising down our average and end of period forecasts for 2011 from COP1805.0/US$ to COP1850.0/US$ and from COP1750.0/US$ to COP1970.0/US$.

To read the full article, please choose one of the following options: