The Colombian peso depreciated towards its lowest close since July 2006, as it follows the Mexican peso Monday.

The peso weakened to 2,446.1 Colombian pesos to the dollar as of 12:20 p.m. EST, its lowest level since July 26, 2006, from COP2,435.8 on Friday.

"The Mexican peso's worth is falling following after negative data in the U.S.," Cesar Tovar, a market analyst with local unit of Stanford Group, said. "People here just follow the trend," he added. Tovar sees the peso weakening to COP2,500 in the coming days.

The peso has depreciated 7.8% so far this year.

Reuters: Colombia peso dips to lowest level since July 2006

BOGOTA, Feb 2 (Reuters) - Colombia's peso <COP=RR> currency closed on Monday at its weakest level against the dollar in two-and-a-half years, dragged down by global risk aversion and expectations for deeper interest rate cuts, traders said.

The central bank, in an effort to stem the peso's slide, staged its second $180-million auction of "call" options in as many days.

The peso ended down 0.44 percent at 2,446.5 per dollar, a level not seen since July 2006. Monday's loss extended its slide since the start of the year to 7.87 percent. In the last 12 months, the peso has weakened by 24.77 percent.

Orlando Gonzalez, an analyst at the Banco Popular bank, said risk aversion due to the global slowdown and expectations for further interest rate cuts were pressuring the peso.

"(Those factors) are contributing to the dollar's tendency to firm," he said.

Colombia's central bank cut its benchmark interest rate by 50 basis points for a second consecutive month on Friday, and policy-makers hinted that more reductions were likely. (Reporting by Nelson Bocanegra; Writing by Helen Popper; Editing by Jonathan Oatis)