The price of the dollar in Colombia began without news and on stable ground this Monday’s session -August 8- after the inauguration of Gustavo Petro as President of the Republic for the period 2022-2026, as a sign that the markets are calm and that for now the change of command is received in a good way.
According to the Colombian Stock Exchangethis currency opened with a value of 4,310 pesos, 23 below the Representative Market Rate set for today by the Financial Superintendence at 4,337 pesos and 28 cents, after the constant increases of last week, in which volatility reigned .
Contrary to what happened on June 20, after the second presidential round, on this day the price of this currency has maintained a sustained trend, far from oscillations between highs and lows, marking a maximum of 4,325 and a minimum from 4,310. Likewise, with a cutoff at 9:00 am, it registers an average cost of 4,315 pesos and 24 cents.
These figures remain very close to those reached on Friday of last week, when when it again registered an upward trend and ended at 4,345 pesos, in a day that was marked by the publication of the unemployment data in the United States, which raises fears of an even stricter attitude from the Federal Reserve (Fed) regarding interest rates.
According to analysts such as Juan Eduardo Nates, Senior Currency Associate at Credicorp Capital, the first operations make it clear that the markets are relatively calm, thanks to the data revealed between Thursday and Friday of last week, both in Colombia and in United States, which make the outlook clear for investors and close the gap to speculation.
“These first few weeks showed us the figures for inflation and employment in our economy, we saw the employment data in the United States on Friday, which was well above expectations, what this is showing us is that finally the increases in interest rates by the Federal Reserve are in some way well justified for managing the inflation. An employment data like the one that came out on Friday, because what it is showing is basically that economic activity is still recovering, ”explained this expert.
Although the news at the moment is positive, according to the experts, we must be very attentive to the announcements made in the coming days by the new government, since they will impact the markets, for better or for worse, depending on how they are taken by investors.
“A day like today, after the inauguration of Gustavo Petro, we are waiting for the tax reform text, on which a base has already been generated and we know what the collection aspirations are. We have also learned about the appointments that have been made, which have generated various reactions. Basically, for now, we’re walking on familiar ground,” Nates said.
Another factor that must be taken into account is that international oil prices continue to lose ground and its price is returning to levels that were before the war in Ukraine. For now, the value of a barrel of crude oil remains below 100 dollars, both for WTI and for Brent.
The barrel of West Texas Intermediate (WTI) for delivery in September loses 2% for now to 87 dollars in New York, a minimum since February before the invasion of Ukraine. Meanwhile, the barrel of Brent from the North Sea for delivery in October loses about 1% and falls to 90 dollars in London.