Colombian Peso Tests 5-Year High

The Colombian peso surged to 3,570 per USD in June, testing its strongest level in over five years, after rightwing populist presidential candidate de la Espriella unexpectedly won the first round of elections.

The candidate, seen as an outsider, set up the run-off against leftist Cepeda, backed by outgoing President Petro.

The surge in the peso tracked similar moves for other Colombian asset classes.

Espriella had pledged to cut Colombia's growing budget deficit amid the country's increasingly tight public finances, with last year's shortfall coming at 6.4% of the GDP, a reason cited by the central bank to hold rates restrictive.

At the same time, the candidate also pledged to back coal mining and oil drilling in Colombia, which face opposition from the incumbent government.