The Colombian peso became the emerging currency that revalued the most against the dollar following legislative election results, driven by expectations of a market-friendly political balance. The US dollar closed at $3.745, down $50.55 from the TRM. Analysts attribute this movement to investors' positive surprise at the success of the Consulta por Colombia and a divided Congress.
The results of Colombia's legislative elections had an immediate impact on financial markets, with the Colombian peso standing out as the emerging currency that strengthened the most against the dollar. The US dollar recorded a fall during the day, closing at $3.745, representing a decline of $50.55 from the Representative Market Rate (TRM) of $3.795.55. The minimum price was $3.728.50 and the maximum $3.780, with 1,877 transactions worth up to US$1.311 million.
This behavior responds mainly to local and international factors. Nationally, investors reacted positively to the success of La Consulta por Colombia, seen as an opposition coalition, and the balance in Congress, reducing risks of power concentration. "The election factor at the opening showed a positive surprise for investors with votes for the standout candidate in the center-right consultation," said Gregorio Gandini, financial markets analyst.
Alejandro Sánchez, equity analyst at Aval Casa de Bolsa, explained: "The Colombian peso is operating slightly contrary to the dollar worldwide because the market is reacting to yesterday's election results, in which La Consulta por Colombia had enough votes to be considered a success. Additionally, Congress is divided, showing a balanced power equilibrium regardless of who wins the presidency. These two facts are considered positive for investors".
On the international front, the rise in oil prices, driven by the Middle East conflict and the closure of the Strait of Hormuz, contributed to dollar volatility. Juan Pablo Vieira, CEO of JP Tactical Trading, noted: "Following recent elections, the victory of a center-right coalition in Congress has been interpreted as a signal of greater institutional balance, generating optimism among investors and improving economic stability expectations".
The peso's revaluation exceeded 1%, placing it ahead of the South Korean won, Russian ruble, and Brazilian real. However, experts like David Cubides, chief economist at Banco de Occidente, warn of future volatility: "The exchange rate should show upward pressure amid significant external volatility, though elevated oil means more income for Colombia". National underlying inflation rose to 6.08% this month, with food and education as main drivers.
