Amid a political scandal threatening president Gustavo Petro, the Colombian peso rose to a 10-month high, marking the biggest gain among major emerging-market currencies. Despite Petro’s turmoil surrounding campaign funding accusations, the peso remains the best-performing currency among developing nations this year, up 13% YTD. This robust performance is linked to rapidly declining fiscal and current account deficits. Furthermore, the likelihood of major structural reforms increasing fiscal spending has significantly dropped recently, contributing to the currency’s strength.