On Wednesday, the Colombian peso experienced significant losses, with emerging-market currencies seeing declines. The currency fell by as much as 2% against the dollar, reaching its lowest point since May 2023.

This decline is due to increasing fiscal risks and volatility in oil prices, which are crucial for Colombia's economy. Year-to-date, the peso has depreciated by over 14%, reflecting its heightened sensitivity to risk-off sentiment in the market. The strengthening of the dollar, particularly after Donald Trump's election victory, has further worsened the challenges faced by the peso.