Analysis by Region - Latin America
Surging energy commodity prices have greatly supported Colombian assets. The Colombian peso (COP) has appreciated by about 4% against the US dollar so far in March, but we think recent local gains will be short lived. We see the outcome of the recent legislative election results as unfavourable, and the worsening fiscal outlook will likely dent optimism. Based on our commodity price assumptions, we expect the currency to trade at around COP4,000/US$ by the end of the year.
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