The dollar falls to 2025 lows in Colombia, below 4,000 pesos for the first time since July 2024.

The price of the dollar in Colombia continues its downward trend and this Wednesday hit a new year-to-date low of 4,009.73 pesos, its lowest level since July 2024.

The currency opened trading at 4,030 pesos, with a low of 3,992.30 pesos—a price not seen since December 13, 2023—and a high of 4,032 pesos. There were also 1,779 transactions totaling $1.1267 billion, according to data from the Colombian Stock Exchange.

The average price during the day was 4,006.39 pesos, or 41.35 pesos less than the Representative Market Rate (TRM), set at 4,047.71 pesos. This figure has not been seen since July 23, 2024, and which reinforces the weakening of the greenback in both local and global foreign exchange markets.

According to analysis by Rodrigo Lama, head of fintech firm Global66, this depreciation was in line with the evolution of the VIX volatility index, which remained below 20 points throughout last week, reflecting an environment of less uncertainty in the financial markets," he explained.

Lama projects a structurally weaker dollar in the coming months, supported by signs of an economic slowdown and a possible shift in monetary policy by the Federal Reserve.

However, in the short term, the possibility of unexpected events, primarily geopolitical, re-emerging could trigger renewed demand for safe haven assets, including the dollar.

Grupo Alianza analysts believe the US currency "will remain at similar levels to its current ones in the short term, influenced by uncertainty regarding trade announcements from the United States."

They anticipate a downward correction toward the end of the year, " with an exchange rate fluctuating between 4,000 and 4,200 pesos. This gradual appreciation of the peso would be supported by continued investment flows, falling US inflation, and possible cuts by the Federal Reserve."