The dollar in Colombia registers a high volatility in the local market on Tuesday, which in a short range of time led it to break down the $4,700 barrier, to then settle above that level.
In the first minutes of the day, the coin traded below $4,700, a fact that had not happened since last February 6. President Gustavo Petro even commented on a publication that recorded the bearish behavior of the US currency. “AHA”said the president, referring to the fall of the dollar in Colombia.
However, this trend was short-lived and in a matter of minutes, the foreign currency changed course and broke upwards, once again, through the $4,700 level.
Its average price closed at $4,744, that is, it rose 10 pesos against the TRM of the day, which is $4,734.
“In the morning we had a dollar bottoming out at $4,651, which was basically the basis for the first failure in the series. When the dollar broke down to $4,830, that level put pressure on many stocks and the series returned to settle between $4,660 and $4,620. This rearrangement led the foreign currency downward at the beginning of the day. However, this base of the series coincided with a bullish scenario in the international market in the foreign currency. If observed, the dollar is rising against the currencies of Latin America, a situation that would later push the US currency upwards in Colombia.explains Diego Franco, president of Franco Group SA, Head of Franco Capital Management investments on the behavior of foreign currency.
Dollar rises after Powell’s aggressive comments
Another factor that responds to the rise of the dollar in the international markets is the aggressive comment of the president of the Federal Reserve (Fed), Jerome Powell, in favor of speeding up interest rate hikes in the US.
Powell warned this Tuesday that the Fed is prepared to accelerate rate hikes if the economic data justify it.
“If the totality of the data indicates that faster tightening is warranted, we would be prepared to accelerate the pace of rate hikes,” points out Powell in the speech that he plans to give today before the US Senate and that the Fed has already published.
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