The dollar in Colombia hit a new high: it closed at $4625 on July 12 | today’s news

The dollar in Colombia has reached its historical maximum.

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The dollar in Colombia reached a new all-time high, at the end of the day the currency stood at $4,625, compared to Monday’s close at $4,578.

This Tuesday, according to the Set-FX platform, it opened at $4,590, moved an average of $4,627.72, and reached a maximum of $4,663 and a minimum of $4,589. It is worth noting that the representative market price for today’s session was $4,513.28, meaning that the dollar closed $112 higher.

The exchange rate appreciation is largely due to fears of a global recession in the second half of the year. Uncertainty continues to grow with interest rates hikes by the US Federal Reserve since March, to which are added recent reports confirming weakness in major economies.

As analysis Bloombergthe Colombian peso is trading at historical lows “amid lower oil prices and political uncertainty”.

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The dollar reached parity with the euro for the first time since 2002

The price of the euro fell this Tuesday, for a moment, to one dollar per unit, a level that has never been reached since the introduction of the single European currency two decades ago, due to the risk of disruption in the continent’s economy. Russian gas supplies.

Later, the European single currency settled at $1.0050, up 0.10%, but the respite for the euro may be short-lived. Many analysts expect the euro to fall below $1, something we haven’t seen since December 2002.

Wall Street critics have warned that this strength in the US currency could cause problems for corporate profits in the future. “The dollar’s rise is a symptom of global malaise and will make life more difficult for US companies and international central banks,” Vital Knowledge’s Adam Crisavoli explained in a paper.

Market operators fear a major energy crisis due to the interruption of the flow of Russian gas arriving via the Nord Stream 1 gas pipeline, which is currently undergoing maintenance. This tension is fueling fears of a recession in Europe. Energy coming from Russia is at the “heart of the storm in Europe” and the announcement by Canada on Saturday that to ease the energy crisis with Russia, it will send needed turbines to Germany, “has not had a positive effect,” said analyst Jeffrey Haley, of Oanda. .

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The European Central Bank may find itself in difficulties if it wants to end its expansionary monetary policy and move to a deflationary phase to combat the rampant inflation that is exacerbating the situation. For its part, the issuer of the dollar, the Federal Reserve, has more room to maneuver to continue raising interest rates, as the employment figures published on Friday prove that the US economy offers greater flexibility for the time being.

Oil falls

The decline in oil prices deepened, Tuesday, in the context of concern about the health of the global economy that threatens the outlook for demand. barrel Brent North Sea shares for September delivery lost 4.51% in the early hours to stay at $102.29.

The price of a barrel of US West Texas Intermediate (WTI) for delivery in August fell by 4.80% to $99.13, well below the symbolic threshold of $100 a barrel.

Wall Street

Wall Street opened in the green Tuesday, with its main index, the Dow Jones Industrial, opening 0.35% higher, as the stock market braces for its second-quarter results season and fresh inflation data. For its part, the Nasdaq Market Composite Index, which groups major technology companies, added 0.96%, or 109.12 units.

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By sectors, profits were dominated by non-staple goods companies (1.19%), technology (0.84%) and telecommunications (0.43%), while energy companies were distinguished by their losses (-1.49) and public services (-0.32). %).

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