Dollar Strengthens Against Colombian Peso as Technical Barriers Fall

According to official exchange rates and market charts, the US dollar gained ground against the Colombian peso on June 19, 2025. The dollar opened near 4,061 pesos and climbed to a high of 4,095 pesos before closing at 4,076 pesos.

This shift marked a reversal from the peso’s previous run of strength and signaled renewed pressure on Colombia’s currency. The move came during a day of limited global trading activity, as a US holiday reduced liquidity and muted international flows.

Despite the lighter volumes, the dollar’s advance proved decisive, breaking above key technical resistance levels that had held for several sessions.

This change in direction caught traders’ attention, especially after the dollar touched its lowest point of the year earlier in the day. Technical indicators on both the four-hour and daily charts confirm the shift.

The Relative Strength Index (RSI) on the four-hour chart hovered in the mid-30s, indicating the peso had entered oversold territory but was not yet showing a clear reversal.

The Moving Average Convergence Divergence (MACD) remained negative, but the histogram showed signs of bottoming, hinting at a possible pause in the dollar’s rally.

Bollinger Bands narrowed, reflecting reduced volatility after the sharp move, while price action pushed against the lower band before rebounding. Moving averages reinforced the bearish trend for the peso.

Colombian Peso Under Pressure as Oil Exports Fall

The 50-day and 200-day moving averages on the daily chart both sloped downward, and the dollar’s close above short-term averages suggested further upside potential.

Support for the peso appeared around 4,060, but the failure to hold this level during the day exposed the currency to additional losses. Fundamental factors also weighed on the peso.

Colombia’s central bank kept rates high, but falling US crude oil imports from Colombia signaled weaker demand for the country’s main export. Official data showed US crude imports from Colombia dropped by more than 60% in the last week, compounding pressure on the peso.

Meanwhile, inflation expectations in Colombia remained stable, but the lack of fresh catalysts left the peso vulnerable to external shocks. In summary, the dollar’s rise against the peso on June 19 reflected both technical and fundamental challenges for Colombia’s currency.

The break above 4,061 and the close near 4,076 suggest the peso faces continued headwinds, especially if oil exports remain weak and global risk appetite stays low. Traders will watch upcoming sessions closely for signs of stabilization or further declines.

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