The dollar closed the week higher and above 4,330 pesos

Dollar closed above $4,400, after two days of strong rises

The dollar in the Colombian market experienced another day of strong increases. The US currency rose close to 100 pesos this Thursday, which add to a trend similar to that of the previous session.

That’s the way it is, the foreign currency rose close to 200 in two days and surpassed the barrier of $4,400.

According to the Stock Exchange, the dollar closed this Thursday at an average price of $4,415, that is, it increased 99 pesos compared to the TRM of the day, which was $4,316.

Last day the foreign currency in Colombia rose 99 pesos as well.

WHY IS THE DOLLAR STRENGTHEN?

The strength of the dollar in Colombia and other markets is due to risk aversion and despite the fact that some data from the US economy were worse than expected.

Second-hand home sales fell USA in July strongly 5.9%, for the sixth consecutive month (-5.5% in June), but these figures did not stop the appreciation of the greenback.

For its part, applications for unemployment benefits fell in the US last week more than expected, while the situation of the industry in the Philadelphia region improved in August. These figures from the US economy were better than expected and boosted the greenback.

Despite raising interest rates by 0.75 points at their last meeting in late July, members of the US Federal Reserve’s (Fed) open market committee then recognized that it might be appropriate to slow down the frenetic rate of hikes.

“The minutes endorsed the view that the effective federal funds rate will likely end up in the 3.25-3.5% range by the end of the year,” according to Monex Europe analysts.

BRIEFCASE

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