With a high of $103, the dollar crossed $4,000 and returned to a three-week high

On Monday, the dollar closed at an average price of $4,016.28, which is an increase of $103.77 over the representative market price (TRM), which stands at $3,912.51 for today’s session.

The open price of Set-FX was $4,010, while the high was $4,041.90 and the low was $3,965.59. During the day, 1,306.9 million USD were traded through 2,440 trades.

The US currency opened less than a week higher before the second round of Colombia’s presidential election; And in a move in line with the international panorama, taking into account the annual figure of 8.6% inflation in May in the United States, which puts pressure on further increases in the Federal Reserve and raises the risks of a recession, affecting risky assets.

European shares slumped to their lowest level since early March as investors fear rising inflation could further tighten monetary policy, raising the risk of a recession.

The Stoxx 600 is down about 1.9%, while the S&P 500 futures are down 2.1%, with the underlying index approaching a bear market. US 10-year Treasury yields rose to 3.28%, the highest level since May 2011, as the sell-off of European government bonds accelerated.

European stocks were sold off this year on fears that central banks could cause economies to shrink as they tighten policy to curb rising prices.

The Stoxx Europe 600 fell to its lowest level in a month last week as the European Central Bank set a slightly more aggressive course than economists had expected. An unexpectedly high US consumer price reading has fueled bets that the Federal Reserve will have to step up its fight against inflation.

“The problem with risk assets is that they are in a dilemma, and we have to choose between two bad options,” Max Kettner, senior multi-asset analyst at Hsbc, told Bloomberg. If inflation stays high for longer then central banks need to do more, which is bad for valuations, and ultimately bad for risky assets. On the other hand, if growth falls more than expected, earnings estimates will have to be lowered.”

Oil fell on Monday as the emergence of Covid-19 cases in Beijing dented hopes for a rebound in Chinese demand, while concerns about an interest rate hike to rein in hyperinflation further pressured prices.

A barrel of Brent oil, a benchmark for Colombia, rose 0.06% to $122.08. While West Texas Intermediate (WTI) stock rose 0.08% to $120.77.

“The current drop in prices has been exacerbated by officials’ warnings of a ‘fierce’ spread of the Covid virus in Beijing, which is casting doubt on the immediate recovery in demand,” PVM oil operator Tamas Varga told Reuters.

Concerns about further interest rate hikes, exacerbated by Friday’s US inflation data which showed the Consumer Price Index rose 8.6% last month, also pushed oil lower and weighed on investors in financial markets.

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