Colombian Peso: The Strongest Currency in Emerging Markets

The strength of the US dollar against major world currencies has weakened several emerging market currencies this year. The possibility of further interest rate hikes by the US Federal Reserve (The Fed) until the end of the year is fueling the US dollar's appreciation. However, some emerging market currencies have managed to strengthen against the US dollar.

According to Bloomberg data, the Colombian peso appreciated by 5.31% against the US dollar as of May 14, 2018, compared to its position on December 29, 2017. This strengthening is the highest among other emerging market currencies. This was followed by the Chinese renminbi, which strengthened by 2.66%, and the Malaysian ringgit, which appreciated by 2.43% against the US dollar.

Meanwhile, the Argentine peso recorded the deepest weakening in emerging markets, at 19.75% against the US dollar this year. This was followed by the Turkish lira, which depreciated by 12.11%, and the Brazilian real, which depreciated by 8.1%. The Indonesian rupiah weakened by 2.88% against the US dollar this year, reaching a level of 13,973 per US dollar.