The price of the dollar rose on the first of last September, and therefore closed

With the beginning of the day and despite the slight decline in its first operations, The price of the dollar in Colombia closed its first session in September with a strong upward trend stimulated by the need for good news in global markets, While domestically, investors are waiting for tax reform discussions to begin in Congress.

According to the Colombian Stock Exchange, This coin closed at a recent price of 4,488 pesos, 59 more than the closing price on Wednesday, when it managed to end the month of August slightly higher. With this result, the dollar is very close to the 4,500 pesos barrier and is stoking fears of a new margin of historical highs.

Meanwhile, the US currency averaged 4,467 pesos and 73 cents, a figure that also exceeded 45.6 the representative market rate set today by the FSA at 4,422.77. This upward trend, according to analysts, is explained by fear among investors of a possible recession in the main economic forces of the world.

Let’s remember that on September 13 we have inflation data in the US and that data will be fundamental, since then At the beginning of August, we saw a fact that gave some peace of mind And if a new drop in this indicator materializes, it may generate some calm within the Fed and of course in the markets. Juan Eduardo Netes, an analyst at Credicorp Capital, explained that it was already clear that an interest rate hike would occur despite the economic downturn that might occur.

In other values ​​recorded by the dollar in this session, the maximum reached this currency was 4,488 pesos worth 90 cents, despite the collapse it suffered around 9:00 am, as it fell to the minimum 4,436 pesos With 40 cents. cents, to then begin to rise strongly and end as already described.

however, It should not be overlooked that the Colombian peso is not the only one losing strength against the US currency, Which during the day reached 109.55 points, which puts it at its highest value in 20 years compared to other world currencies.

This was dealt a blow with the Japanese yen, which sank on Thursday to its lowest level in 24 years against the dollar, which benefited from its safe haven status in a turbulent market and also rose against the euro and the pound.

The Japanese currency, which was also affected by the very accommodative policy of the Bank of Japan, lost 0.73% and settled at 140.00 yen to the dollar at the end of the afternoon session. The collapse of the yen, which lost more than 20% in one year, is due, according to the exchange, to Japan’s very flexible monetary policy.

Unlike the US or Europe, where inflation has risen to over 10% in the UK, Japan’s inflation was 2.4% y/y in July, very close to the 2% target for major central banks, pushing the BoJ into negative.

Although the situation in Colombia at the moment is stable, despite high inflation, and pressures on the dollar mainly abroad, The outlook for the national market is currently focused on the start of the tax reform debate in Congress. This has been an issue that has generated conflicting opinions, as while some praise its benefits, other sectors suggest it will seriously affect the country’s economy.

At the moment, the biggest fear is that the new tax burden that will be imposed on the country will scare away investors and lead to capital flight to other countries with less stringent tax payment procedures. Likewise, businessmen assert that, contrary to what the national government says, this affects the most modest families, with taxes on sugary drinks.

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