The Colombian peso surged by 3% intraday on Friday. This surge was a reaction to the currency’s innate volatility and limited liquidity. Notably, the peso had underperformed just the day before, on Thursday, owing to traders recalibrating carry trades. Yet, it bounced back before touching its 50-day moving average. Notably, in terms of one-month implied volatility, the Colombian peso tops the list in Latin America at 16.6%, a substantial lead over the Brazilian real, the next most volatile currency.