Colombia: Columbian peso weakens
October 8, 2014
The Colombian peso (COP) weakened against the U.S. dollar in September, continuing the trend that began in early July. On 30 September, the currency traded at 2,025 COP per USD. This was 5.4% weaker than the level recorded on the same day in August. In annual terms, the Columbian peso lost 5.9% against the U.S. dollar. In the beginning of October, the peso continued to depreciate slightly, reaching the weakest value since 17 March this year, when trading at 2,029 COP per USD on 6 October.
The Colombian peso weakened against the U.S. dollar along with other Latin American currencies as strong U.S. data point to an increased probability of the U.S. adopting a tighter monetary policy stance soon. A higher probability that the Federal Reserve Bank will hike interest rates soon drove demand for the U.S. dollar and depreciated riskier currencies.