• Peso was closed Monday when emerging-market currencies fell
  • Currency hasn't weakened past 3,000 level in three weeks

Colombia’s currency fell as traders, returning from a national holiday, priced in the emerging-market decline seen on Monday, when oil fell to a two-week low.

The peso dropped 0.7 percent to 2,979.68 at 10:43 a.m. in Bogota after reaching a three-week low of 2996.50, nearing the 3,000 level that it hasn’t crossed since April 18. The peso was the second-worst performing currency from developing nations, with only Malaysia’s ringgit falling further.

Emerging-market currencies sold off Monday after data showed imports to China fell 11 percent last month from a year earlier, undermining the outlook for demand for commodities. West Texas Intermediate crude oil fell to $43.44 on Monday, the lowest close since April 25, before rebounding on Tuesday.

“The peso is playing catch up,” said Camilo Perez, the head analyst at Banco de Bogota. Reduced bets on further interest rate increases in Colombia following lower-than-forecast inflation data published last week is also helping the move in the peso, according to Perez.

Colombian inflation slowed in April for the first time in almost a year, sparking bets that the central bank will raise interest rates less than investors previously expected.

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