The Colombian peso appreciated 0.49% on Thursday against the dollar, closing at COP1917.55. The rise comes despite the government’s attempt to stem its appreciation by purchasing dollars.
The peso opened at COP1,931 to the dollar, reaching a maximum price of COP1,939.89 and a low of COP1,917, according to Bancolombia.
The Colombian Central Bank announced measures on Wednesday to halt the rise of the peso, in order to protect export industries. The bank said it would buy $20 million a day in an attempt to stabilize the currency, causing the peso to close 1.66% down, at COP1,927 to the dollar.
The currency’s strengthening after the dip caused by Wednesday’s announcement shows that a strong peso is the fundamental trend of the market, according a local analyst interviewed by the Wall Street Journal (WSJ).
“This is the trend of the peso, in reality,” Cristian Arteaga, an analyst with local brokerage Suma Valores, told the WSJ. “The bank’s announcement shouldn’t affect the market too much because they are only buying $20 million per day.”
The peso’s upwards movement is due to the growth in foreign direct investment, which stood at a gross $8.557 billion in 2009.
