The dollar rose 194 pesos on the first working day of this week, after Gustavo Petro’s victory in the presidential election. The price of the US currency in the first 15 minutes of operations reached a maximum of 4,091.38 pesos, according to the report of the electronic trading system of the Colombian Stock Exchange, and after yesterday negotiations with this currency took place in the next day’s market. in Colombia.
The official starting price for the day was 3,905.05 pesos, and it finally closed at 4,026.92, on average. Which means a $121 price increase.
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Analysts had already expected a strong recovery in the dollar as a result of the results of the country’s presidential elections in its second round, which gave the historic charter candidate the victory.
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According to Juan Eduardo Nets, chief currency strategist at Credicorp Capital, such volatility was expected in this market during Tuesday’s session. He pointed out that after the first round of the presidential elections, the peso corrected its price by about 4.7 percent, rising from 3930 to 3740 pesos as a minimum, but due to the optimism of recent weeks, that value returned and took the currency. to 4,042 pesos levels.
However, given the expectations of what could happen with the second round of the presidential elections, the exchange rate remained above 3,905 pesos, while the market expected a rebound due to the victory of Gustavo Petro, the candidate who was not favored by the market. , says the analyst.
“It was expected to start at 3.5 per cent against 4,040 pesos, and what we have left are the next levels, 4,050 pesos it wouldn’t be a problem to beat it, and then there’s 4,070 pesos, Which was not an important turning point and was overcome without difficulty looking for 4100 pesos until it reached 4133 pesos”, explains Nets.
He adds that this Tuesday there was weakness in currencies across the Latin American region, such as the Chilean peso, the Brazilian real and the Peruvian sol.
The expert adds that the drop in the oil price to levels of $ 111 a barrel is not in Colombia’s interest much, because it is facing what will be the largest volatility during the year and what remains until the inauguration of the elected president, which is the period during which the new ministerial government and other important announcements must be known.