Colombian Peso

The Colombian peso is trading near a multi-year high of 3,132 pesos per US dollar, marking a roughly 20% one-year rally. The currency's strength benefits importers but pressures exporters, with a central bank rate decision pending.

The COLCAP index declined 0.38% on Friday, while the Colombian peso remained stable near 3,217. Ecopetrol's performance tracked crude-oil weakness in a cautious pre-weekend market session.

The Colombian peso gained over seven percent against the dollar in June, marking its largest single-month rise in a decade.

Colombia's COLCAP stock index remained nearly unchanged, rising 0.01% to 2,260, while the peso gained approximately 2% against the dollar following a weak US jobs report. The dollar fell to around 3,360 pesos as a result of the economic data.

The Colombian peso reached a five-year high against the dollar, falling to 3,475 pesos per dollar, its lowest since January 2021. The peso is the most-revalued emerging currency over the past year, rising 19.4 percent, reversing its previous status as the worst-performing currency in its group. Strong remittances are cited as a key driver.

The Colombian Peso rose sharply against the U.S. dollar following right-wing candidate Abelardo de la Espriella's lead in the presidential election. De la Espriella, a pro-business supporter of Donald Trump, will face socialist Iván Cepeda in a June 21 runoff. Ecopetrol shares increased 10.13% amid the market reaction.

Colombia is purchasing dollars ahead of a $4 billion bond buyback plan to address inflation and currency devaluation. The Colombian peso has significantly weakened against the US dollar due to combined international and local economic pressures.