Colombia Peso Defies Central Bank Bid to Halt Carry-Fueled Rally

The Colombian peso is the top-performing EM currency as investors largely disregard the central bank’s attempts to curb its rally. Market focus is shifting to the peso’s carry appeal, implying continued inflows driven by yield differentials despite policy efforts to slow appreciation.

Analysis

The Colombian peso is the top-performing EM currency as investors largely disregard the central bank’s attempts to curb its rally. Market focus is shifting to the peso’s carry appeal, implying continued inflows driven by yield differentials despite policy efforts to slow appreciation.