The dollar in Colombia does not find a floor and remains low

The price of the dollar in Colombia He still can’t find a flat and his downtrend it is consolidated below 4,200 pesos.

(See: Compared to the regional average, the dollar in Colombia would still be high).

This Thursday, June 8, the currency opened at 4,200 pesos and has also been traded at 4,171.45, 4,172, 4,183 and 4,193 pesos, among others.

The maximum value that it has reached during the day has been 4,215 pesos, while the minimum has been 4,162.50 pesos.

At 11:10 am, the average trading price was 4,182.13 pesos, 27.01 pesos less than the Representative Market Rate (TRM) of the day, which is 4,209.14.

(See: Why the dollar in Colombia is devalued despite the political crisis).

Experts have explained that the minimum price at which the currency would oscillate would be 4,200 pesos, while the expectations of the agents is that after a year and a half it will possibly reach the 5,100 pesos.

Some factors that could impact the price curve in the short term are associated with macroeconomic scenarios, to uncertainty in internal political measures that would generate a country risk and to external situations, such as new measures by the Fed or bearish values ​​in ‘commodities’ (oil).

(See: If the dollar should be at $3,800, why is it worth more than $4,000).

For now, the Colombian peso is the currency that registers the best performance in this 2023 among developing countries.

“The markets are comfortable with the crisis that begins to unfold in the administration of Petro“, said Brendan Mckenna, currency strategist at Wells Fargo.

“If the Petro reform agenda cannot be implemented and the Petro is essentially in a weak scenario, that combination removes a lot of political risk from the currency.“he added, as reported by the agency Bloomberg.

(See: The price of the dollar in the country would reach $5,100 in the medium term).

In addition, the fiscal and current account deficits are “falling very fast, and the probability of major structural reforms to social security that would push up fiscal spending has decreased substantially in recent weeks“, said Armando Armenta, a senior economist at AllianceBernstein in New York, that favors Colombian assets since last October.

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