Currencies
Colombian Peso Slumps on Budget Concerns and Oil Price Swings
- The peso fell as much as 2% on Wednesday to an 18-month low
- Telefonica arbitration award added to fiscal questions
The peso has been hit recently by a string of headlines about government finances, which has raised concerns about the nation’s fiscal health.
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The Colombian peso led losses among emerging-market currencies Wednesday, dragged lower by mounting fiscal risks and swings in the price for oil, the nation’s most important export.
The peso weakened as much as 2% against the dollar, dipping to its lowest level since May 2023. The currency has lost more than 14% this year and become increasingly sensitive to risk-off sentiment, while the dollar has strengthened since Donald Trump won the US election, said Andres Pardo, head of LatAm macro strategy at XP Investments.