Colombia’s peso reached a four-month high of COP1,909.08 to the U.S. dollar on Monday, due to market expectations of increased dollar inflows from oil company investment in the country.
The peso closed the day at COP1,919 on the interbank market, according to Bancolombia, as quoted by El Mundo.
So far this year Colombian peso has appreciated 6.46%, according to Bancolombia’s figures.
Bloomberg quoted a trader at Corredores Asociados as saying that “foreign direct investment is increasing at a very fast pace, mainly coming from oil and energy companies that are bringing dollars in.”
The trader predicted that the currency may strengthen to COP1,870 per dollar during the next month and a half, and that this would worry Colombia’s government.