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Wednesday, October 5, 2022

Dollar in Colombia: how did it start on Tuesday, August 16?

The price of the dollar reversed its course in Colombia on Tuesday 16 August and left behind last week’s persistent fall in price, which took it below 4200 pesos, and in today’s session it regains most of the gains lost in previous days, despite the the fact that fears and expectations remain because of the Fed’s statements regarding its interest rates.

Although, according to the Columbia Stock Exchangethe currency opened with a starting price of 4,174 pesos, 9 below the Representative Market Rate set by SuperFinancial today at 4,185 pesos 49 cents, quickly corrected its trend and began to rise.

In its first movements in the local market, the dollar initially fell to a low of 4155 pesos, implying that it will fall due to the fear that exists in international markets due to the specters of recession, which do not disappear completely in some countries, since the effect caused by last week’s optimism has already passed.

However, with the 9:00 am cutoff, it marks a strong uptrend, with the high at the moment at 4,217 and the average at around 4,211 pesos. thus returning to the values ​​that were seen last Wednesday, when it began to rapidly fall to the already mentioned values.

Juan Eduardo Nates, an analyst at Credicorp Capital, says there is little stress among investors right now as many companies cut their earnings forecasts for next year in anticipation of reduced consumption thanks to the recent interest rate hike. .

We wake up with the markets in typical recession fear stress which are still unfounded in interest rate hikes by the Fed. Basically we had some companies where traders were looking at companies predicting lower earnings for next year and that is obviously based on the interest rate hike and therefore more low expectations. consumption for the coming months,” said the expert.

The past week was marked by the strengthening of local currencies, including the Colombian peso, amid a lull in the markets of the United States, which eased slightly after inflation data released by the White House, which provided a respite from the pressure. experienced.

“The dollar is back under pressure, with the DXY already close to 106.85 and the euro back to the 1.01 we saw from last week’s 1.03 high. Oil, which is coming back strongly, is 95 in the case of Brent and 85 in the case of WTI, and this puts pressure on commodities in a certain way, which are also correcting down after last week’s optimism,” the expert added.

Oil prices fell sharply on Monday, and the US WTI fell below the symbolic mark of $90 amid disappointing data on the Chinese economy and the prospect of a deal with Iran on its nuclear program.

In London, a barrel of Brent oil from the North Sea for delivery in October lost 3.10%to stay at $95.10. Meanwhile in New York, West Texas Intermediate (WTI) crude for September delivery fell to $89.41, shedding 2.91%.

“We are seeing the Colombian peso break the 4200 mark, once again a major volatility support, moving within the barrier between 4150 and 4125 pesos as of today, which will be support ahead of these new highs this year.” he explained. Nates.

As of today, expectations in Colombia are in the Economic Continuation Indicator data, which reveals the Dane he will be with. clarity about the consequences of inflation in the country and whether it is finally beginning, as feared, to affect national production.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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