This is how the dollar price will rise on Friday, June 24 after the elections

reference image.

France Press agency

The dollar ended negotiations on Friday at an average price of $4,140.50, above the representative market price, which was set for Friday at $4,068.75 by the FSA. The value set in the market on Friday is close to the historic maximum of $4,153 recorded in March of this year.

The currency had a somewhat volatile behavior after last Sunday’s election, which gave the winner to the historic charter candidate, Gustavo Petro. Tuesday was the day he probably recorded the most ups and downs. And this Thursday marked a noticeable rise in the market price, as it closed the negotiations at $4,102.

However, international factors prevailed on Friday more than the post-election scenario in Colombia, especially analyzes indicating that the US economy may enter a recession, largely due to the rapid growth of inflation.

Read also: Is the US economy ready for a recession?

Recession winds are usually bad news in general, but in this case they fall especially badly, as they will mark a new low for the global economy, which is still trying to restore its pre-pandemic indicators.

The behavior of the dollar in Colombia goes hand in hand with that of the Colombian Stock Exchange (BVC), which recorded, at least until Thursday, a three-day decline.

For Thursday, BVC’s Colcap Index is down 2.43%. The measure affected most was the activity of Ecopetrol, which fell 13.61% on the third consecutive day of decline in its stock price on the stock exchange.

However, at the market open on Friday, BVC posted a slight recovery. At 1:45 pm, Colcap’s price was up 1.58%. Likewise, shares of Ecopetrol also rose 6.23% on Friday.

Read also: Progress of the National Agreement: Álvaro Uribe accepted Gustavo Petro .’s invitation

How are the international markets?

In global markets, the price of Texas Intermediate oil (WTI) opened this Friday with a rise of 1.89%, to $ 106.25 a barrel at a time when the supply of black gold is limited, but at the same time, there is fear that a possible slowdown in economic activity will lead to lower demand in the energy market.

For its part, the price of a barrel of Brent oil (reference to Colombia) closed on Friday in the London futures market at 113.10 USD, up 2.79% from the end of the previous session.

The price rebounded today after two consecutive sessions The fear of a slowdown in the global economy has weighed on the negotiations in the oil futures market. Supply restrictions due to the war in Ukraine and doubts about supply levels in Libya boosted the price on Friday.

The rise in Brent crude also largely explains the rebound in Ecopetrol shares that, according to some analysts, have already begun to take off from the electoral and political situation in Colombia.

It should be noted that the President of the US Federal Reserve, Jerome Powell, announced last Wednesday that the agency will maintain its policy of raising interest rates even with the risk of the country entering a recession. not ruled out.

Read also: How serious is the Ecopetrol stock market crash? Expert explanation

In his appearance before a US Senate committee, Powell emphasized that a “soft landing” of the economy remains the Fed’s goal (i.e. low inflation that affects economic activity as little as possible), but he acknowledged that this scenario is becoming increasingly difficult.

Likewise, Powell admitted yesterday that the body he leads had misjudged the risks of high inflation.

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