Peso Holds Under 3,900 As Bogotá Stocks Hover Near Highs: The Story-And What's Behind It

2025-10-16 05:00:32

(MENAFN- The Rio Times) Colombia opened the day on a calm note. The peso is trading around 3,890 per dollar, the COLCAP equity index sits near 1,891 after a flat close, the Dollar Index is around 98.5, and oil is a touch firmer.

For investors outside the country, that mix means global forces-not local shocks-are setting the tone. What happened yesterday: the peso firmed into the close as the dollar softened globally, helped by lower U.S. yields and talk that the Federal Reserve 's next move is a cut, not a hike.

Oil's bounce offered extra support to a commodity-linked currency. Stocks were steady, but leadership rotated. Winners included Grupo Nutresa (+6.35%), Mineros (+2.79%), Bolsa de Valores de Colombia (+1.61%), Grupo Aval Pref (+1.42%), and Corficolombiana (ord.) (+1.18%).

Laggards were Empresa de Teléfonos de Bogotá (−4.61%), Canacol Energy (−3.85%), Cementos Argos (−3.63%), Bancolombia Pref (−2.57%), and Interconexión Eléctrica ISA (−1.40%).

The story behind the story: Colombia's carry remains attractive. With the central bank's policy rate at 9.25% and annual inflation at 5.18%, real rates are still positive, drawing in peso buyers when global risk appetite improves.

A firmer oil price helps the external balance and sentiment. The counterweights are clear too: inflation progress is slow, global growth is fragile, and any renewed dollar strength would cap gains. The next policy milestone is the Oct. 31 rate meeting.

Technical picture, in plain English: USD/COP is boxed between support near 3,880 and resistance around 3,905–3,930. On four-hour charts, momentum has cooled (weakening MACD, RSI in the low-40s), hinting at a range day unless news breaks.

On the daily chart, indicators point to consolidation rather than a fresh trend; a close below 3,880 would reopen the mid-3,800s, while a push above 3,930 would favor a dollar bounce.

For equities, the COLCAP 's upswing stays intact above 1,880, but 1,900–1,903 remains sticky; better breadth and volume would be needed for a clean breakout.

What to watch next: follow-through in oil, any U.S. data or trade headlines that move the Dollar Index, and local flows into banks and energy-the sectors that usually set Bogotá's tape.

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