The Colombian peso Thursday weakened ahead of the Central Bank's monetary meeting, to be held on Friday, as investors expect the board will take steps to limit the peso appreciation. The Colombian peso weakened to 1,916.60 pesos to the dollar, from COP1,895.6 on Wednesday. "Foreigners were the main sellers as they expect the bank may decide to put limitations on the entry of foreign capitals in the country to limit the demand for pesos," Julian Cardenas, a market analyst with local brokerage Corredores Asociados, said. Last week, Finance Minister Oscar Ivan Zuluaga said the Central Bank's seven-member board, where he sits, will discuss the possibility of taking measures to limit the peso appreciation. "With those comments and the market reaction they triggered, Zuluaga has left no choice to the bank but to start buying dollars," Cardenas said. The benchmark IGBC stock index fell 0.7%, to 11,008.88 points. Shares of state-controlled power company Isagen SA (ISAGEN.BO) fell 0.7%, to COP2,095, while the shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) fell 1.3%, to COP2,635. On the debt market, meanwhile, the yield on the benchmark 2020 Colombian peso-denominated bond rose to 8.619% from 8.596% on Wednesday.
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