Colombian peso strengthens as dollar slips below key 3.700‑peso barrier

The U.S. dollar fell to around 3.660 Colombian pesos, breaking the technical 3.700‑peso level that analysts had been monitoring. The decline was driven by a mix of factors, including stronger emerging‑market currencies, a rebound in oil prices that benefits Colombia’s crude exports, and lower inflation pressure in the United States that reduced demand for a stronger dollar.

The market opened the following day at roughly 3.646 pesos, trading in a “Next Day” mode because the U.S. market was closed for Memorial Day, resulting in markedly reduced liquidity. Analysts noted that the dollar’s downward bias was also supported by expectations of a de‑escalation in U.S.–Iran tensions, which had pushed Brent crude below $95 a barrel and WTI around $91, easing global inflation concerns.

The exchange‑rate move comes as Colombia heads into the final week before its presidential election on 31 May and awaits the release of April unemployment data. The central bank’s policy board will meet, though no monetary‑policy decision is expected at that session.