After a day that marked the beginning of August with a dollar in Colombia below $3,900, the currency paused the trend, and this Tuesday closed the day at $4,006.36, standing at $107.88, above the Representative Market Rate, which for today is $3,898.48. In addition, it reached lows of $3,950, and highs of $4,046.
This occurs while the currencies of the region lose ground against the dollar. The Colombian peso with this closing price is the second most devalued currency of the day against the emerging ones, losing 1.63%.
See also: Dollar today: the currency continues to fall and moves below $3,900
Analysts believe that this move is being led by the dollar globally. “He continues to react to that GDP data in the United States that went very well, and if it will be that growth will not give him the opportunity to lower inflation what it should be,” said Felipe Campos, investment and strategy manager at Alianza Valores , who also adds that “it is one more issue of global rest hand in hand with strong data in the United States.”
Specialists on the price of the dollar in Colombia
To this is added the expectation of the employment data in the United States that will be given on Friday and can define the movement of the dollar.
Campos adds that the rebound may even reach $4,200, but the currency will continue its downtrend.
According to Reuters, investors are bracing for the end of the series of rate hikes by the Federal Reserve, whose increase last week is seen as one of the last in its current tightening cycle.
“The economy is a bit weaker than people would like and I think that is concerning for earnings growth going into the second half of the year,” Michael Hewson, chief analyst at CMC Markets, told Reuters.
In currency markets, the dollar hit a three-week high against the yen JPY= as investors continue to seek clarity on the Bank of Japan’s recent tightening of its yield curve control and what that could mean for monetary policy .
Also read: How to identify a fake 100 thousand pesos bill?
Oil Prices
Crude prices fell on Tuesday on signs of profit-taking after rebounding in July as investors bet on reduced global supply and growing demand in the second half of the year.
“Oil prices are at risk of a correction as markets have been overbought for the past month,” Tina Teng, an analyst at CMC Markets told Reuters.
Along with hopes for an increase in demand, it is expected that at this Friday’s Opec+ meeting, Saudi Arabia will apply its voluntary cuts until September, which would further reduce supply.
The barrel of Brent oil, a reference for Colombia, fell 0.32% to US$85.16, while the WTI fell 0.21% to US$81.63.
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