Colombian Peso Rose Slightly Against Dollar Amid Global Pressures

Trading Economics reported the Colombian Peso (COP) opened at 4,075 against the U.S. Dollar (USD) on February 21, 2025, morning.

By 10:32 AM CET, it rose to 4,082.50, gaining 7.50 COP (+0.18%). This followed a volatile February 20, when the pair closed at 4,089.92 after peaking at 4,108.95.

Yesterday, the peso dropped 0.17% as oil prices fell to $72 per barrel, hurting Colombia’s export-driven economy. Strong U.S. retail sales boosted the dollar index by 0.3%, adding pressure.

Overnight, the pair stabilized between 4,085 and 4,090, despite a risk-off mood in Asia. Traders moved cautiously as volumes hit 1.2 million contracts, below the 1.5 million average.

The Global X MSCI Colombia ETF lost $5 million in outflows on February 20, signaling investor unease. Meanwhile, Colombia’s central bank held rates at 10.25%, balancing 10% inflation against 1.8% GDP growth.

Market makers shared insights on the day’s action. Bancolombia’s Juan Morales noted steady bids at 4,080 with 300,000 contracts traded. JPMorgan’s Sarah Kline highlighted the pair testing 4,090 resistance, citing ETF outflows.

Citi’s Carlos Rivera quoted 4,082/4,084, with spreads widening to 10 pips overnight. Technically, the pair sat above the 50-day average of 4,093.82, nearing the key 4,100 level.

The RSI at 58 suggested room before overbought conditions hit. However, falling oil prices and U.S. tariff threats under Trump kept the peso vulnerable.

Rumors circulated on X about a Colombian bank intervening if 4,100 broke, though no evidence surfaced. Coffee prices climbed 1% to $2.10 per pound, offering slight relief. Still, broader emerging market currency struggles, like Turkey’s Lira, cast a shadow.

The peso’s modest rise reflected USD strength rather than COP resilience. Analysts saw oil and U.S. policy as key drivers ahead. Traders watched 4,090 resistance, expecting choppy action as U.S. markets opened later.