Colombia: Colombian peso gains ground in June
The Colombian peso strengthened in recent weeks, thanks to higher oil prices and a weaker U.S. dollar. On 5 July, the peso traded at 3,212 per USD, which was 2.9% stronger than its value the same day in June. The peso was also up 1.1% year-to-date but was down 10.4% over the same month of the previous year.
In June, the peso clawed back some of the losses the currency suffered in April and May when adjustments to the fiscal rule raised concerns over the pace of fiscal reform. The gains were mainly driven by favorable price developments for oil and a weaker greenback. Latin American currencies overall were also given an additional boost by hopes of progress in U.S.–China trade negotiations and that IMF Chief Christine Lagarde’s recent nomination to head the ECB will translate into maintaining the Bank’s dovish stance going forward.