Colombian peso weakens to 3,280 per dollar on rate bets

The Colombian peso opened trading on Thursday, September 24, at COP 3,280 per US dollar, averaging COP 3,280 in early minutes. This represents a 15-peso increase compared to the official representative market rate (TRM) of COP 3,264.39. Early trades moved between a low of COP 3,276 and a high of COP 3,282 after the approval in first debate of Colombia's 2027 budget bill, valued at COP 635 trillion.

The opening followed a volatile session on Wednesday, September 23, when the peso depreciated 2.3% to close at COP 3,276, touching an intraday peak of COP 3,317. The Colombian currency was the worst performer in Latin America, where regional peers lost an average of 0.9%. The US dollar index (DXY) advanced 0.5% to reach 101 points against G7 currencies.

According to analysts at Banco de Bogotá, the dollar strengthened on rising expectations of a 25-basis-point interest rate increase by the Federal Reserve in October, now assigned a probability near 70%. US PMI survey data for September supported this shift, with the composite index reaching 58.4 against an expected 55.3, driven by manufacturing and services improvements.

The dollar's gains offset strength in crude markets, where Brent rose 4.3% to close at $103 per barrel on September 23 amid speculation about potential US diesel export restrictions.