The Colombian peso posted a dramatic 13.91% appreciation against the US dollar on Thursday, outperforming all other emerging-market currencies in a single session.
The sharp revaluation underscores the growing appetite for high-yielding assets as foreign investors flock to Latin American markets seeking returns above global benchmarks.
37% since the conclusion of Colombia’s presidential second-round vote.
This intraday spike builds on a broader trend of strength for the peso, which has already gained 2.37% since the conclusion of Colombia’s presidential second-round vote.
The currency’s resilience reflects a confluence of political stability and attractive monetary conditions, with local interest rates remaining significantly higher than those in developed economies.
This yield differential continues to drive carry-trade flows, positioning the peso as a top performer in the emerging-market complex.
The move comes as the US dollar faces renewed pressure from shifting Federal Reserve policy expectations and softer inflation data.