Reference photo. / Bloomberg Agency
The dollar closed the day higher on Wednesday, with an average price of $3,914, up $18 from Tuesday’s close of $3,896. The representative market rate (TRM) remains at $3,895.53.
During the first period, the minimum price of the currency was US$3,890 and the maximum was US$3,925.
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According to analysts surveyed, the price of the dollar in the first week of 2024 will depend on the behavior of world oil prices and the development of other international events. In addition, inflation data and the response from central banks will be critical if interest rates are to be cut. Thus, by the beginning of 2024, the dollar will be close to $3,900.
It is worth noting that there are national and international factors that affect the currency, and it is very important to pay close attention to them. The main international factor is the monetary policy of the US Federal Reserve.
For investors, the expectation of higher interest rates is critical; Devaluation of the local exchange rate against the dollar, although progressive, will be driven by these expectations. Moreover, international decisions, especially those related to inflation control, will have a direct impact on the strengthening or weakening of the currency.
Interest rates in the US are expected to fall in the coming weeks, just as they have already begun to do in Colombia.
Now the macroeconomic context of the Colombian economy also has a strong influence. At the local level, votes of confidence from the national government are critical, fueling expectations of economic growth expected to exceed 1.5%. The level of security and confidence provided to investors will play a crucial role in the economic equation of the country.
In addition, Bank of the Republic decisions regarding interest rates also directly affect the currency. The decline in this figure to 13% indicates signs of a more promising future for the Colombian economy. It is also important to highlight the increase in the flow of remittances into Colombia, which results in the influx of a significant amount of currencies, which marks the depreciation of the exchange rate.
The New York Stock Exchange opened lower on Wednesday, maintaining the corrective move that began the day before, supported by the giant capitalization in the technology sector.
In early trading of the session, the star index, the Dow Jones industrial average, fell 0.30%, the tech-heavy Nasdaq lost 0.81% and the broader S&P 500 index, a key benchmark for investors, lost 0.49%.
Wall Street ended Tuesday’s session mixed on profit-taking, with the Dow Jones up 0.07%, the Nasdaq down 1.63% and the S&P 500 down 0.57%.
European stock markets closed sharply lower on Wednesday amid a cautious market ahead of new monetary policy measures.
The Paris stock exchange lost 1.58%, its worst session since September; in Frankfurt – 1.38%, this is the worst drop since October; in London – 0.51%; in Madrid 1.26% and in Milan 1.39%.
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