The Colombian peso strengthened to levels unseen since 2019, defying three weeks of negative economic developments.
The USD/COP pair fell 1.27% to close at 3,091.9 on Tuesday, breaching the 3,101.9 support level and reaching its lowest point in seven years. The move occurred despite three consecutive weeks of negative economic signals for Colombia, which typically weigh on the peso.
Prior to this drop, the pair had traded above 3,100 for most of the year, with the last comparable low recorded in 2019. Analysts had expected the peso to weaken amid recent economic headwinds, but the currency instead rallied, confounding market expectations.
The decline in USD/COP reflects broader strength in the Colombian peso, though immediate market reactions remain muted as traders assess the sustainability of the move.