This Tuesday, The dollar closed at $4,807.63 on average, which meant a drop of $78.03 compared to the Representative Market Rate, which for today is $4,885.66.
The low for the day was $4,783, while the high was $4,844. More than US$934.52 million were traded through 1,584 transactions.
The dollar has registered a fall against other currencies pairs with US Fed rate hike expectations.
Ricardo Evangelista, a senior analyst at ActivTrades, explained that despite the fact that senior Federal Reserve officials continue to maintain a hawkish stance, expectations about what the Fed will do in the future have been changing. Many investors are now predicting a slowdown in the central bank rate hike cycle.
“The narrative is shifting from focusing on inflation to worrying about a recession, and the Fed is expected to take a more dovish stance to soften the looming economic contraction. Jerome Powell’s speech late in the day may or may not provide more clues. In any case, the markets now seem convinced that the reign of the dollar king is over, a scenario that creates room for further depreciation of the greenback and rises in gold prices,” the expert explained.
Oil prices were steady on Tuesday as the market awaited the Federal Reserve’s rate hike plans to gauge their impact on the economy and fuel demand.
The barrel of Brent oil, the reference for Colombia, rose 0.77% to US$80.26; while WTI rose 0.96% to US$75.35.
A weaker dollar may boost demand for oil, experts say, as dollar-denominated commodities become cheaper for holders of other currencies.
Both WTI and Brent rose 1% on Monday after China, the world’s biggest oil importer and second-biggest consumer, opened its borders over the weekend for the first time in three years.
China also issued a second batch of crude import quotas for 2023, raising the total for this year by 20% from last year.
On the other hand, US crude and distillate stocks reportedly fell last week, a preliminary Archyde.com poll showed on Monday. On Tuesday, the American Petroleum Institute will publish crude oil inventories at 4:30 p.m. Washington time.