On Monday, the Colombian peso strengthened to the highest level in more than a month. The growth occurred against the background of comments from a central bank representative on the need to keep rates at a high level for longer.
On Monday, the Colombian peso rose to a maximum of more than a month. The currency strengthened by 0.54 percent and reached the mark of 3150.25 per dollar. This is the highest level since September 17.
Member of the board of directors of the Central Bank of Colombia Laura Moisa spoke on Friday. She noted that inflation is mainly caused by supply shocks. According to her, interest rates will have to be kept at an elevated level longer than expected.
The US Federal Reserve raised rates for the first time since 2023 last month. Investors now expect at least two more hikes by March 2027. Such actions by the Fed usually support the dollar against other currencies.
The Colombian peso has become one of the strongest currencies in the region this month. Investors are attracted by higher yields as an alternative to the US currency. The index tracking Latin American currencies rose by 0.45 percent. Two other currencies in the region added 0.26 and 0.38 percent respectively.