Despite its downward trend between July 13 and 20, the dollar regained ground again and closed this Friday at $4,423.93 on average, which represented an increase of $13.79 compared to the Representative Market Rate (TRM), the $4,410.14.
Although the market was calming down and the currency dipped below $4,300 on Tuesday, news from the outside did not help. The most decisive was the rise in rates to 0.50% by the European Central Bankthe first upward adjustment in eleven years.
This move, which aims to curb inflation in the eurozone, moved investors, who, as has happened when the US Federal Reserve (FED) raises rates, once again bet on the dollar.
Alsoas the FED meeting approaches next week, volatility increases and that determined that the currency consolidated a closing week of gains, although it had lost more than $300 after touching maximums of $4,627.46, per TRM, on July 13.
According to Davivienda analysts, internally the significant increase in imports in May, which raised Colombia’s trade deficit to 71.2%, also made noise and helped the dollar appreciate even more against the peso because the news was more negative than the market expected.
In this regard, the economic studies center Anif specified that the price escalations in the world and the possible fall of the economies of Europe and Germany, particularly, will continue to put pressure on the dollar and the only thing that Colombia can do now is for the next government to send messages of certainty about the fiscal and energy path