Dollar Closed Strong in Colombia on August 16: Why?

With a strong recovery bringing it back to the numbers it was running at the start of last week, Colombia’s Dollar Day closed on Tuesday, August 16th, on a day when the currency rose, not only in the local market. , but also took a lot of land away from the currencies of other countries.

According to the Columbia Stock Exchange, the official currency of the United States ended the day at 4,255 pesos, which is 88 pesos and 34 cents above the closing price last Friday, when it closed at 4,166.66, affected, among other things, by the rise in global oil prices. the prices.

Similarly, a dollar averaged about 4,128 pesos at 11 cents. 32.62 more than the market representative price set for this session by the FSA at 4,185.49; After last week’s persistent meltdowns, which brought it to levels not seen in over a month.

dollar August 16 Photo: Columbia Stock Exchange

In other values ​​reported by this coin during Tuesday, the maximum price reached 4,256 pesos at the close, despite the fact that it fell in the first operations to 4,155 pesos and made many analysts and experts believe it would be a full day. And the Despite increasing external pressures.

According to analysts, the recent strengthening of the economy and production in the United States is gradually dispelling the specter of recession, which is why many dare to say that it may be the worst of the crisis, and in this way confidence is strengthened in that country. .

Industrial production rebounded more than expected in July in the USThanks to strong support from auto manufacturing, according to data released on Tuesday by the Federal Reserve (Federal Reserve, the central bank).

Industrial production grew 0.6% from June, higher than the 0.3% analysts had expected. During July 2021, the increase was 3.9%. This progress is mainly due to the increase in the manufacture of cars and auto parts, which grew by 6.6% after six months of continuous decline.

This sector, which is essential in generating employment, has been very turbulent for a year and a half due to the shortage of semiconductors, which has been weighing down the production of vehicles. Meanwhile, consumer demand is being eroded by inflation and The increase in the cost of credit, due to increases in Federal Reserve rates.

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A man’s hand holding a stack of $100 bills, close-up – Photo: Getty Images / iStockphoto

Likewise, it should be borne in mind that consumer confidence in the US economy recovered more than expected in August, thanks to the prospects for improvement in inflation that occurred after recovery numbers and slowdown in cost of living increase achieved. known all these weeks.

According to the University of Michigan, the index settled at 55.1 points, an increase of 7% from July, And above the 52.1 point analysts had expected. In June, this key indicator reached an all-time low.

Thus, the United States is going through a moment when this increase in confidence is driving the US currency into price and devaluing other currencies against which it has been devalued, especially in emerging economies.

Finally, we must remember the relationship between the price of oil and the value of the dollar in Colombia, which rises every time crude oil prices fall. Oil prices fell sharply on Monday and US West Texas Intermediate crude fell below the token level of $90 After disappointing data on the Chinese economy and the possibility of reaching an agreement with Iran over its nuclear program.

In London, the price of a barrel of North Sea Brent oil for October delivery fell 3.10% to settle at $95.10. Meanwhile, in New York, West Texas Intermediate (WTI) for September delivery fell to $89.41, a 2.91% loss. An agreement on Iran’s nuclear program could end oil sanctions on the Islamic Republic.

*With information from AFP.

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