The Colombian peso broke the 1,900 to the dollar barrier on Tuesday for the first time since October, hitting a low of COP1893.39, reports Portfolio.com.
The peso opened at COP1,901 to the dollar, and reached a maximum price of COP1,903, appreciating 0.82% over the course of the day, according to Bancolombia.
So far this year the Colombian peso has appreciated 7.78%.
Alexander Cardenas of Bancolombia told Portfolio.com that he predicted the peso would hit 1,880 this week, and 1,850 by the end of the month.
The continued rise of the peso comes despite the recent uncertainties in Colombian politics, which were expected to scare investors away from the currency. Colombia’s Constitutional Court on Friday brought to an end the campaign to allow incumbent President Alvaro Uribe to run for a third term in power, casting the country’s future into uncertainty.
“We expected to see some volatility from the political conflict, but we see no change in the trend,” Cardenas said.
On Monday, local brokerage Interbolsa said the market had already come to terms with Uribe’s departure. The court ruling may in fact have reassured investors, bolstering faith in the strength of Colombia’s institutions to resist presidential power.
World events are also influencing the peso’s rise against the dollar, as Julian Marquez, an analyst with local holding company Corficolombiana told the Wall Street Journal. “Events in the U.S. [last week’s upward revision of GDP] have created an appetite for emerging market risk.”