Colombia’s Peso Still Feeling the Brown Drought
In short: The Colombian peso continues to wobble against the U.S. dollar, rattled by both domestic trade woes and global market buzz.
- Domestic trade shock: Imports climbed 4.4% while exports dipped 1%, widening the trade deficit and tightening the peso’s squeeze.
- U.S. dollar revival: After a three‑day stumble, the greenback bounces back, fueled by chatter over Donald Trump’s economic playbook and a potential protectionist push.
- Fed’s hawk mode: Higher U.S. yields and a stronger Federal Reserve stance boost the dollar’s appeal.
- Geopolitical jitters: Any flare‑up in Ukraine or the Middle East amps up market volatility, sending investors rushing to the dollar as a safe haven.
What’s Next?
Eyes are now on upcoming Fed speeches and the Michigan Consumer Sentiment data. If the numbers look robust, markets may brace for more tightening, letting the dollar climb higher and keeping the peso on the down‑slide.
Quick Takeaway
Colombia’s peso traffic jam is pegged to the global dollar rollercoaster, and it looks like the ride is just getting a bit steeper.
