Why is the dollar rising in Colombia? The experts answer
The currency opened this Monday at $4,305. In the first hour, it has moved an average of $4,309.33, reaching highs of $4,321 and lows of $4,295. The opening exceeds the Representative Market Rate by $59, which for the session this Tuesday, August 2, is $4,423.86.
On July 12, the dollar reached an all-time high of $4,623, since then it has shown a downward trend. The currency started the week with a volatile session on Monday, when it traded below $4,240 (down $50). However, in the end it moderated its behavior and fell only $10 to close at $4,277, the lowest level of the exchange rate since last July 7.
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Monday’s fall was the fifth in a row for the dollar in Colombia. In the last week, the currency has fallen more than $200, which represents the strongest revaluation period of the year.
According to the Financial Opinion Survey, analysts estimate that by the end of the year the exchange rate will be around $4,200. Similarly, the latest economic projections report from BBVA Research indicates that the pressure on the exchange rate will moderate in the last quarter of 2022, leaving the dollar at around $4,050.
Wall Street opens in the red
The Dow Jones Industrials lost 0.81%, after closing on Monday with losses and amid growing tension with China over the possible visit to Taiwan of the president of the House of Representatives, Nancy Pelosi.
Fifteen minutes after trading opened, the Dow Jones lost 265.91 points to 32,532.49, while the S&P 500 lost 0.42%. The Nasdaq market composite index, which brings together the main technology companies, lost 0.10%.
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Although last week, shareholders were encouraged by positive signs of second quarter results from the country’s leading companies and expectations that the US Federal Reserve (Fed) will no longer have to raise interest rates as aggressive, optimism has been diluted.
In other markets, Texas oil fell to $93.96 a barrel, the 10-year US Treasury yield rose to 2.631%, gold rose to $1,796.60 an ounce and the dollar gained ground against the euro, with an exchange rate of 1.0183.
The price of a barrel of Brent crude oil for delivery in October fell below 100 dollars on Tuesday when trading on the London futures market at 99.38 dollars, a decrease of 0.64% compared to the close of the previous session.
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