This is how the dollar goes in Colombia on Thursday, July 7

reference image.

Photo: Chan2545

The dollar started trading on Thursday lower ($4335) compared to the market’s closing price recorded on Wednesday. But with the market closed, it broke a new record by hitting $4,395 and trading at an average price of $4,369.71.

The dollar rose more than $200 in just five days, marking the strongest period of devaluation this year. It is similar to what was recorded in March 2020, during the toughest times for the markets when the Covid-19 pandemic broke out.

Read also: How has the dollar’s rise affected the pockets of Colombians?

Currency appreciation is not a factor that is experienced exclusively in Colombia, although it has acted more aggressively than in other emerging economies.

In the background, the dollar is gaining momentum over other currencies as global investors are looking for this currency as a safe haven against recession fears in some economies, especially in the US.

Uncertainty has increased due to the interest rate hike by the US Federal Reserve since March, and due to recent reports of weakness in some of the world’s major economies, such as Germany or Japan.

However, some analysts also point to internal factors to explain the rapid rise of the dollar in Colombia. For example, Mauricio Santamaría, president of ANIF, confirmed through his Twitter account that “people are concerned about political uncertainty, fiscal and external deficits and lack of clarity about what will be done on those fronts. Despite some gains from the strong currency devaluation. , but the truth is that we all lose. We lose because we get poorer and because devaluation moves into inflation. Going forward, what will help us is to clarify the fiscal position (tax reform), so that exports grow, and the BR continues to adjust monetary policy that are the priorities.”

At 1:30 pm, the Colcap Index of the Colombian Stock Exchange (BVC), increased by 0.85%.

Ecopetrol shares led the rise in BVC, up 5.48%, while Grupo Argos shares led the losses, down -3.21%.

How are the international markets?

On the other hand, Wall Street opened higher on Thursday and the Dow Jones Industrial Average rose 0.82% after announcing the increase in the number of weekly applications for unemployment benefits in the United States. Likewise, investors are preparing for another rate hike from the Federal Reserve this month.

Read also: What happens to the dollar in Latin America?

The Bureau of Labor Statistics (BLS) reported today that the weekly number of jobless claims in the United States rose to 235,000 last week, up 4,000 from the previous week.

The international price of Brent oil (the reference for Colombia) rose 4.33% at 1:30 pm and settled at $104.75, according to data compiled by Bloomberg. In Wednesday’s trading, crude fell 2% to $100.69 a barrel.

💰📈💱 Have you heard about the latest news? economic? We invite you to see them at El Espectador.

Leave a Comment