(Bloomberg) -- The Colombian peso’s biggest-in-the-world rally this month is faltering after two straight days of declines as oil prices fell.
The currency weakened 1 percent to 2,917.64 per dollar at 12:48 p.m. in Bogota after a 1.1 percent drop Monday. The peso had gained 7.5 percent this month through Friday, more than any of the other 149 currencies in the world, and closed last week at its strongest level since May.
Oil, Colombia’s biggest export, declined the most in a month on Monday after having climbed more than 17 percent in August. Crude was driven higher partly by speculation that discussions among members of the Organization of Petroleum Exporting Countries may lead to action to stabilize the market. Prices subsequently retreated as Iraq sought to increase exports and Nigerian militants called an end to hostilities, potentially boosting supply.
The peso’s outperformance this year should wane, Brown Brothers Harriman & Co. strategists wrote in a report Tuesday.
“Colombia has solid fundamentals, but the economy remains dependent on oil prices,” they wrote. “We believe that the peso’s outlook will be driven largely by external factors.”
Colombian Finance Minister Mauricio Cardenas said earlier this month that he felt comfortable with the peso around its level at the time of 3,000 per dollar.