Central Banks
Colombian Peso Falls on Smaller-Than-Expected Key Rate Rise
- Central bank hiked interest rates by 1 percentage point to 10%
- The peso was the third-worst currency in the world on Friday
Shoppers at a food market in Riohacha, Colombia.
Photographer: Nicolo Filippo Rosso/BloombergThis article is for subscribers only.
Colombia’s peso weakened and swap rates tumbled after the central bank delivered a smaller-than-expected interest-rate increase, even as consumer prices rise at the fastest pace in 23 years.
The peso was the third-worst in the world on Friday out of more than 140 currencies tracked by Bloomberg, posting a drop of as much as 1.2% to 4,583 per US dollar, while two-year swap rates fell 32 basis points, the biggest drop since July.