The price of the Colombian Peso continues to strengthen against the US Dollar, causing the USD/COP to extend yesterday's decline. The pair has fallen this Friday to new lows since September 2022 at 3,747.63.
At the time of writing, USD/COP is trading above 3,760.66, losing 0.33% daily.
The Colombian peso strengthens in anticipation of Colombia's inflation
- The dollar has gained strength against its main rivals, but not against the currencies of emerging economies such as Colombia or Mexico. The Dollar Index (DXY) has risen strongly to two-day highs of 104.69 following the US Non-Farm Payrolls (NFP) data, which revealed that 303,000 jobs were created in March, well above the 200,000 expected and 270,000 in February.
- On Friday afternoon, Colombia will publish inflation data for March. A higher Consumer Price Index (CPI) could push up the Colombian Peso, as it could imply a delay in the interest rate cut by the Bank of the Republic of Colombia. On the contrary, a drop in inflation could weaken the Colombian currency against the Dollar. In February, the Colombian CPI grew at an interannual rate of 7.74%, its lowest level since January 2022.
economic indicator
Consumer Price Index (YoY)
The Consumer Price Index (CPI) is published by the National Administrative Department of Statistics (DANE) of Colombia, measures the variation in the price of goods and services representative of family consumption. It is a way to measure changes in consumption and inflation trends. Readings above expectations could be interpreted (taking into account the potential impact on monetary policy) as positive for the Colombian peso (COP), while readings lower than expected as negative for the Colombian currency.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
