The dollar in Colombia closed this Friday, June 2, below $4,400 and close to the levels at which it was quoted on the day of President Gustavo Petro’s inauguration, on August 7, 2022.
(Dollar in Colombia closed the week below $4,400).
The minimum price that the US currency reached this Friday was $4,339, a level very close to the $4,337 at which the TRM was set on Sunday when the Colombian president took office.
This weekend and until Monday, the current Market Representative Rate will be $4,355.
By far in the month of May, the Colombian peso was the currency that gained the most against the dollar.
We reached the same level with which I received the currency in the Duque government.
https://t.co/3WsDACbINo— Gustavo Petro (@petrogustavo) June 3, 2023
Since the possession of the Petro until now, several internal and international events have marked the strong volatility of the foreign currency, which has currently lost strength against the dollar due to uncertainty about the US economy due to the agreement to raise the debt ceiling and the possibility of going into ‘default’.
(Expectations for inflation in the US pressure the dollar downwards).
For its part, in domestic matters, the Government’s commitments to comply with the fiscal rule have calmed the market, which has favored the Colombian peso amid the turbulence in the US.
Regarding what may happen in the short term, Ricardo Rodríguez García, postgraduate professor at the Business School of the Technological University of Bolívar (UTB), points out that “It is not easy to predict what will happen with this currency, since everything will depend on the ability with which the United States economy can recover its economic momentum.”
The possibility that the Fed changes its monetary policy in June and after the US reached an agreement on the debt, could lead to changes in the behavior of the currency in the coming days, warn analysts.
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