The US dollar in Colombia reached 3807.40 pesos on Friday, driven by international and local tensions. US President Donald Trump's statements ruling out negotiations with Iran, combined with upcoming elections in the country, fueled volatility in the currency. It closed at 3795.68 pesos, up from the previous representative market rate.
The dollar's performance this week was marked by significant volatility, influenced by international and national factors. Globally, tensions in the Middle East escalated after US President Donald Trump stated he has no intention of negotiating with Iran. This sparked risk aversion among investors, bolstering the dollar as a safe-haven asset.
Locally, the approach of Saturday's elections and an Invamer poll showing Iván Cepeda in the lead added to market caution. The currency hit a low of 3770 pesos and a high of 3807.40 pesos during the session, with 2115 transactions totaling 1444 million dollars. It closed at 3795.68 pesos, up 27.74 pesos from the previous Representative Market Rate of 3767.94 pesos. This level had not been seen since December 2025, when it reached 3810 pesos before declining.
Analysts emphasized the impact of these developments. "The dollar remains strong globally despite benefits to some countries from rising oil prices. This risk aversion is reflected in a strong dollar," explained Catalina Tobón, strategy manager at Skandia Colombia. She added that uncertainty over Iran, with restrictions on crude exports and production halts in the Middle East, has driven up oil prices.
Paula Chaves, markets analyst at GH Trading, noted: "Part of the rebound responds to portfolio rebalancing and increased demand for dollar hedging, which is common as markets approach scenarios of political uncertainty." Katherine Ortiz, head of equity at Davivienda Corredores, stated: "The main reasons for the dollar's wide volatility stem from local and international factors. Internationally, the global dollar has strengthened as investors seek this currency for refuge and liquidity."
These shifts illustrate how external events, such as conflicts and Federal Reserve policies, alongside internal dynamics, influence Colombia's exchange rate.