Colombian Peso Strengthens by 7.5% as Global Dollar Weakness Takes Hold

The Colombian peso saw significant gains in July, appreciating by 7.5% against the US dollar as global economic factors and domestic flows contributed to its rally.

The peso's strength was fueled by a global sell-off in the US dollar, rising oil prices, optimism over Colombia's incoming government, and heavy dollar sales by local market participants.

Bancolombia analysts attributed some of the peso's gains to the policy rate hiking cycle that began in January 2026, as well as elevated yields on Colombia's peso-denominated government bonds.