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Wednesday, October 5, 2022

The dollar closed strong in Colombia on August 16, why?

With a strong rebound taking him back to the numbers he ruled early last week, he closed the day for the dollar in Colombia on Tuesday, August 16, a day when the currency strengthened in more than just the local market. .. but also took away a lot of space from the currencies of other countries.

According to the Columbia Stock Exchangethe official currency of the United States ended the day at 4,255 pesos, up 88 pesos and 34 cents from last Friday’s closing price of 4,166.66, influenced by, among other things, rising global oil prices. Prices.

Likewise, the average dollar price was about 4,128 pesos 11 cents; 32.62 more than the Market Representative’s Rate set for this session by the Finance Department at 4,185.49; after continuous crashes last week, which raised it to a level that has not been seen for more than a month.

Dollar 16 August
Dollar August 16 – Photo: Columbian Stock Exchange

In other values ​​reported by this currency during this Tuesday, the high price reached 4,256 pesos at the close, despite the fact that in the first transactions it fell sharply to 4,155 pesos and led many analysts and experts to think that it would be a day down. , despite increased external pressure.

According to analysts, the recent strengthening of the economy and manufacturing in the United States is gradually dispelling the specter of a recession, so many dare to say that perhaps the worst of the crisis and thus building confidence in this country. .

US industrial production rebounds more than expected in Julythanks to strong growth in car production, according to data released on Tuesday by the Federal Reserve System (Fed, the central bank).

Industrial production rose by 0.6% compared with June, exceeding the 0.3% expected by analysts. Compared to July 2021, the growth is 3.9%. This growth was mainly due to an increase in the production of automobiles and auto parts, which rose by 6.6% after six months of continuous decline.

This sector, key to creating a workforce, has been very worried for a year and a half about the shortage of semiconductors, which weighs down the production of cars. Meanwhile, consumer demand is undermined by inflation and an increase in the cost of credit due to an increase in the rates of the Federal Reserve System.

Creative Getty
Man’s hand with a stack of US hundred dollar bills, close-up – Photo: Getty Images/iStockphoto

It should also be taken into account that consumer confidence in the US economy recovered more-than-expected in August, due to the prospects for improvement in inflation, which arose after the published data on the recovery and slowdown in the cost of living. known during these weeks.

According to the University of Michigan, the index was 55.1 points, up 7% from July. and higher than expected by analysts 52.1 points. In June, this key index reached its historical low.

So the United States is going through a moment when this boost in confidence is leading to the US currency being quoted and cut against other currencies against which it has depreciated, mostly in emerging economies.

Finally, we must be mindful of the relationship between the price of oil and the value of the dollar in Colombia, which rises sharply every time crude oil prices fall. Oil prices fell sharply on Monday, and US WTI dropped below the symbolic $90 level. after disappointing data on the Chinese economy and the possibility of an agreement with Iran on its nuclear program.

In London, a barrel of North Sea Brent for October delivery fell 3.10% to $95.10. Meanwhile in New York, West Texas Intermediate (WTI) crude for September delivery fell to $89.41, shedding 2.91%. An agreement on Iran’s nuclear program could put an end to oil sanctions against the Islamic Republic.

*According to the AFP agency.

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