Colombia: Peso plunges amid wider emerging markets selloff
September 7, 2018
On 6 September, the Colombian peso ended the day at 3,086 per USD, weakening 6.4% over the same day in August. The peso has fallen 3.4% on a year-to-date basis and 6.0% from same day last year amid a wider sell-off in emerging markets.
Argentina’s rapidly deteriorating currency crisis has weighed on the Colombian peso and the currencies of other regional players. The ongoing turmoil in the Turkish lira, the intensifying U.S.–China trade war, the U.S. Federal Reserve’s move to tighten monetary policy, and falling oil prices have also spurred a rapid sell-off in emerging market currencies.
Colombian Peso Exchange Rate Forecast
The FocusEconomics panel sees the peso regaining some lost ground by the end of the year but remaining relatively weak. FocusEconomics analysts see the peso ending 2018 at 2,906 per USD and 2019 at 2,948 per USD.
Author: Nihad Ahmed, Economist