The Colombian peso bounced back from a year-long devaluation this week, putting the US dollar below the COP2,800 bar.
The drop followed an announcement by Colombia’s Central Bank last week in which it said to increase the interest rate to 5.25%.
Additionally, dropping crude oil prices that had spurred the peso’s year-long devaluation bounced back, recovering some of the South American country’s revenue of oil, Colombia’s biggest export product.
After markets opened on Wednesday, the dollar bounced back slightly, positioning itself at COP2,816 just before 10AM local time.
The peso’s rebound followed a year of steady decline in which it fell from COP1,883 against the dollar on September 1 last year to over COP3,000 in August.
Colombian peso hits record low: Dollar breaks through COP3000 mark