• The Colombian peso has reversed course and is now trading weaker against the dollar on the day, following earlier headlines that President Petro had threatened to halt payments if Congress didn’t raise the debt ceiling. USDCOP is now up 0.9% on the day, lifting the pair 2.5% from MTD lows earlier this week. IBR swap rates are also trading c20bp higher on the day.
  • In contrast, the Chilean peso is outperforming and trading over 1% stronger against the dollar, following firm PPI inflation data earlier. The move brings USDCLP back to around the 900 level, with sights on 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg.

LATAM FX: Colombian Peso Under Pressure Following President Petro’s Comments On Debt Ceiling

Last updated at:May-24 15:22By: Keith Gyles
  • The Colombian peso has reversed course and is now trading weaker against the dollar on the day, following earlier headlines that President Petro had threatened to halt payments if Congress didn’t raise the debt ceiling. USDCOP is now up 0.9% on the day, lifting the pair 2.5% from MTD lows earlier this week. IBR swap rates are also trading c20bp higher on the day.
  • In contrast, the Chilean peso is outperforming and trading over 1% stronger against the dollar, following firm PPI inflation data earlier. The move brings USDCLP back to around the 900 level, with sights on 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg.

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