The Colombian dollar broke the trends again and closed this Tuesday with a strong rally

Leaving behind all expectations held for this day and the end of August, the price of the dollar in Colombia closed with a strong rise that made it exceed 30 pesos above the records achieved at the beginning of the week, when pressures. From international markets affected the decline in its value.

At the end of today’s operations Tuesday August 30 The last price of the US currency, according to the Colombian Stock Exchange, was 4,422 pesos and 50 cents, nearly 45 pesos above the average records of the previous session, when it was about 4380 pesos.

Similarly, the average value for the day was 4,402 pesos and 49 cents, an increase of 16.36 from the representative market price set for the day by the FSA at 4,386.13, after yesterday’s incidents, which were mostly influenced by the Federal Reserve’s announcements on Friday. Past.

BVC Coin Balance – August 30 – Photo: Columbia Stock

For experts like Juan Eduardo Netes, an analyst at Credicorp Capital, these results are given as a trace of Monday’s crash, when the market was still holding. Dissatisfaction with what Federal Reserve Chairman Jerome Powell said about interest rates and the new decline in GDP in the United States.

“Yesterday we saw how the Colombian peso broke 4,400 hard below, showing how it resisted at 4,370 and today we expected or ideally to break 4,355 maximum and 4,335 minimum. However, as we have seen, the markets are still scared and that is The reason for this coin to rise again,” Nets said.

Among other values ​​of today’s session, the dollar in Colombia fell to at least 4,351 pesoswhile the maximum reached 4,429 pesos and 70 cents, indicating that investors continue to choose safe haven assets and cause their prices to rise due to the law of supply and demand.

It should be remembered that US GDP contracted somewhat less than initially announced in the second quarter, 0.6% in annual projection, but continues to decline, threatening to take the world’s largest economy into recession. The second estimate from the Commerce Department is 0.3 percentage points lower than the first estimate (-0.9%) announced at the end of July.

However, US consumer confidence rose in August after three months of decline and improved more than expected, despite persistent fears of inflation and a possible recession, the Conference Board reported on Tuesday. The index, which measures confidence, rose to 103.2 points from 95.3 in July. whose data has been slightly modified downwards. Analysts expected 97.4 points.

Made of boom

Fear of recession prevails among investors

Although studies like this show that the picture appears to be improving in the future, the fear prevailing in the markets cannot be ignored. Just remember that Wall Street lost all of its August gains on Friday after Powell dashed hopes of easing monetary policy by the Federal Reserve in the near future.

He seemed determined to use higher interest rates and not cut them quickly in the future, Even if it was causing hardship to families, Patrick O’Hare of said, adding that “Powell didn’t throw a glass of water in Wall Street’s face. He poured a bucket of ice water on her!”

The idea of ​​a future increase in the price of money through higher interest rates is weighing on funding prospects and corporate results, especially in technology, and weighs on indices again, particularly the Nasdaq. .

During the day, both Wall Street and European stock markets were trading lower, weighed down by the persistent fear of a possible recession in the United States, due to inflation, and In Europe, due to possible gas shortages.

* With information from AFP.

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