US Dollar / Colombian Peso

USD/COP's 20-day volatility stands at 1.14% a day, making it one of the most volatile of the forex Kinzan tracks (their median is 0.37%).

Measured against USD/COP's own volatility rather than anyone else's, a −0.9σ reading is the kind of session it has most weeks.

It sits near the bottom of its 24-hour range of 3,142.85–3,182.08, measured on hourly closes.

Most of the move came in the New York session (13:00–22:00 UTC), which accounted for about 92% of the day's price action.

Over the last 60 sessions of daily returns, it has moved most closely with USD/MXN (+0.42, a moderate relationship), and most inversely to GBP/USD (−0.43).

Its last close is at the 44th percentile of its own last 85 sessions, and its 20-day volatility at the 65th.

Market read: The dollar is collapsing against the Colombian Peso, hitting the bottom of its daily range.

What it is

USD/COP quotes the US dollar in Colombian pesos; a rising rate means a weaker peso. The peso floats freely under an inflation-targeting regime set by Colombia’s central bank, the Banco de la República, which has tended to intervene sparingly and through pre-announced mechanisms rather than at its own discretion day to day. Onshore trading takes place during Bogotá business hours, and offshore investors can also use non-deliverable forwards.

What drives it

Oil is the central influence. Crude and refined products have long been Colombia’s largest export, with coal also important, and the state-controlled Ecopetrol is central to both export earnings and public finances. Higher oil prices have therefore historically supported the peso and pushed USD/COP lower, both through export receipts and through foreign investment in the energy sector.

Colombia has also tended to run a current-account deficit and relies on foreign capital to finance it, which makes the peso sensitive to global risk appetite and to the interest-rate gap with the US. Foreign holdings of local-currency government bonds, known as TES, are a significant channel: when global yields rise or Colombia’s fiscal outlook darkens, selling by those investors can weaken the peso quickly. Rating agency decisions on Colombia’s sovereign debt, the country’s fiscal rule and the government’s approach to oil exploration and the wider energy sector have all at times moved the currency. Remittances from Colombians working abroad add a steadier source of dollar inflows.

How it trades through the day

Bogotá’s trading day sits in the New York block (13:00–22:00 UTC), when Colombian data, central bank decisions and the bulk of onshore volume arrive alongside US releases and the most active hours for oil futures. The London block (07:00–13:00 UTC) is mostly quiet for the peso, often tracking oil and early emerging-market sentiment, and the Asia block (22:00–07:00 UTC) sees little activity.

What it tends to move with

USD/COP has historically moved inversely to Brent crude and WTI crude and in the same direction as USD/MXN and USD/CLP. It tends to rise with the VIX and the US Dollar Index during global risk-off episodes, often with larger swings than the Mexican peso.