:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/55UVHCDSNDYQNLAZA4A2KAIBS4.jpg "Dollar in Colombia continues volatility after Jerome Powell’s speech and closed at ,755.89")
The price of dollar in Colombia, it rose again on Wednesday 8 March. That day it closed at an average of $4,755.89after a rise of $10.94 from the Market representative rate (TRM)which today stood at $4,744.95.
On that day, the US currency had an opening price of $4,769.95, while it had a record high of $4,794 and a low of $4,723. According to the platform Set-FX, on March 8, more than $1,449 million was exchanged in 1,893 transactions.
Dollar volatility will continue due to domestic and international factors, including economic policy messages from the Government of Gustavo PetroRussia’s invasion of Ukraine, US Federal Reserve raising interest rates (Fed) to reduce inflation, the same path as the Bank of the Republic of Colombiaand the World Bank’s warning of economic recession and announcement of an economic slowdown.
The new bullish move comes after Fed Chairman, Jerome Powellwarned that the agency is ready to accelerate rate hikes if economic data warrants.
“If the full data indicates that faster tightening is warranted, we would be prepared to accelerate the pace of rate hikes,” Powell told the US Senate during his semiannual appearance.
added, according to EFEthat the country’s latest economic data “has been stronger than expected”, suggesting that “the final level of interest rates will likely be higher than expected”.
In view of these statements, the feeling of risk aversion has increased considerably and strengthened the dollar.
Meanwhile, commissionaire analysts Shares and Securities They clarified that yesterday, after Powell’s announcement, the peso behaved very differently compared to other Latin American currencies, for which bullish pressures were generated against the dollar and ended up appreciating against at the close of Monday.
“In the case of Colombia, the magnitude of the movements seems to be the effect of the correction of the last few days which have been bearish and have not been supported by the macroeconomic fundamentals. Risk perception remains at high levels and increases volatility,” the analysts explain.
In turn, they noted that this may also be partly explained by a significant decline in benchmark oil prices. Brent of -3.55%, given the expectations of global economic downturn about the continuity of restrictive monetary policy.
Likewise, they made it clear that relevant data for the Colombian economy is not expected for this week and therefore the behavior of the currency will be determined by external factors.
Meanwhile, the director of economic research at BTG Pactual, Mounir Jalil, claimed Valora Analytics Given the great volatility of the dollar in recent weeks, standing at levels between $4,680 and $4,900, it is expected that in Colombia it will be around $4,820 at the end of the month. third month of the year.
“Our exchange rate is the only one that has not reached the levels we had before 2022. In the very short term, very important meetings are looming this month with the Fed, the European Central Bank, and around of that, if it continues with a very aggressive speech from the Fed, I think what we are going to have is the exchange rate at levels a little higher than where we are today, ”said Jill.