During the week we expect the exchange rate to remain below the 3,000 pesos barrier as local fundamentals continue to show a recovery of the local economy, and interest rates remain attractive for foreign investors. Thus, low local political and fiscal risks favor investment in other emerging countries such as Brazil and South Africa.
The local exchange rate in October showed significant devaluation pressures, which exceeded 8% and consolidated it as the worst performing currency among its peers. Emerging markets showed considerable capital outflows (the largest since June 2013) due to persistent levels of volatility that affected global stock indexes. Asian and Latin American countries were the most affected, where we highlight the significant buying interest in dollars in Colombia by Offshore agents, who accumulated dollars for $3,775 million, mainly in the forward market.
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