Dollar ran in Next Day mode and closed at $4,914 after falling slightly

The price of dollar, in fashion The next day as it is a holiday in the United States due to the celebration of Presidents Day, ended Monday February 20 at an average of $4,914, after a $4.5 drop from the Market representative rate (TRM), which today stood at $4,918.94.

On that day, the US currency had an opening price of $4,895, while it had a record high of $4,925 and a low of $4,880. According to the Set-FX platform, over $154.8 million was exchanged in 358 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, the US Federal Reserve (Fed) raising interest rates and the World Bank’s warning of economic recession and the announcement of an economic slowdown.

In this regard, the Forex and Derivatives Strategist of Corficolombiana, Maurice Acevedoclarified that the dollar in Colombia has been rising very sharply since January 26, when it marked the price of $4,502.

“The past week (February 13-17) was a bullish week, where it moved to $216 on Thursday from last month’s open, as the market was at $4 on 5,000 $, but Friday was a bearish day, the only day of the week. On this occasion, it opened at $4,950, set a maximum price at $4,960 and fell during the day to a minimum of 4 883.80 dollars to end up closing at 4,902 dollars after the operation of 1,200 million dollars”, specified the expert.

Meanwhile, for what comes this week, Acevedo noted that the center of attention will be in the Fed Meeting Minutes which will be known on February 22 regarding the last meeting where the rate of increase of the interest rate at 25 basis points. This, after a year of outsized hikes and amid renewed uncertainty about how interest rates may ultimately rise in the central bank’s battle against the inflation.

The Corficolombiana Foreign Exchange and Derivatives Strategist also informed that on February 24, the personal data on income and expenses which will shed more light on price pressures, while the revenues of large retailers will shed light on consumers’ situation in the face of soaring prices.

Similarly, the Eurozone will publish preliminary data on Manufacturing Purchasing Index (PMI)) of the manufacturing sector and the testimony of the new Governor of the Bank of Japan, Kazuo Oedacan provide more information on the stance of monetary policy.

For his part, the director of the Banco de la República, Leonard Villarexplained that the depreciation of the peso is explained, in part, by the relative deterioration of the fiscal strength Columbia.

“More recently, a better prospect for fiscal adjustment has been observed with the 2022 tax reform and the financial plan announcements on compliance with the adjustment plan envisaged in the fiscal rule, which has contributed to the appreciation of the peso observed last December and January.”, I note.

However, he stressed the need to recognize that the uncertainty on the future of oil and coal exploration and exploitation maintain a high vulnerability of the exchange rate before international events and helps to explain that in international situations of greater risk aversionAs observed on some days this week, the Colombian peso is experiencing larger depreciations than other currencies in the region.