Colombia’s peso dropped to its lowest value in six months Wednesday morning as concerns over Europe’s sovereign debt crisis grew.
The Colombian currency dropped 1.2% against the U.S. dollar in the first two hours of trading, after which it recovered to 1,850 just before noon.
A currency strategist at Colombia’s biggest bank, Bancolombia, told Bloomberg that the drop is due to growing concerns about Europe’s economy.
“People are nervous Greece will exit the euro,” the analyst told the financial news network.
“Technical levers are favoring declines in the peso” as investors bet on further depreciation, the Bancolombia strategist added.
The Colombian currency has increased 5% since the beginning of 2012.