With the dollar above $5,000, the rise for the year already exceeds 1,034 pesos

On November 15, 1995, the dollar in Colombia reached $1,000, on April 28, 2000, it reached $2,000, on August 19, 2015, it reached $3,000, and on March 13, 2020, at the beginning of the pandemic, it reached $4,000. and today, with $5,015.84 as the official rate, the currency broke the psychological ceiling of $5,000 that in recent months had become “the figure”, as the negotiators of the financial entities that daily trade currencies say.

(Read: The Federal Reserve will continue to raise rates, but they would be lower).

In all the moments in which the dollar reached historical milestones there have been special situations and at present there have been international and national factors to which it is difficult to attribute a percentage of participation, but the truth is that at present the main phenomenon is inflation and the increase in interest rates, to combat it, by central banks, especially the FED in the United States, which yesterday raised 75 basis points.

Added to this is an announced recession in the main economies, which would affect emerging nations and the conflict in Ukraine.

And as an element that cannot escape analysis is the uncertainty with the announcements that scare the markets.

yesterday the currency that banks trade started at $5,020, data that presented a rebound of $6 compared to the previous close and closed at $5,003. The minimum price was $4,989 and the maximum reached $5,038, a new all-time high in trading. However, volume was one of the lowest in recent weeks at US$982 million.

(Also: The dollar became a refuge for Argentine pockets).

Financial analyst Diego Rodríguez says that the markets were waiting for an announcement of a slowdown in the rate hike. “This happened but lightly. Everything is awaiting the employment data on Friday and to a lesser extent, the rate hike by the English central bank”he assures.

He added that the market initially received the FED’s announcement positively, but quickly returned to the red. “If it continues this way this Thursday, it is possible to continue seeing highs,” he warned.

Arnoldo Casas, director of Asset Management Investments at Credicorp Capital, indicates that the increase in rates in the United States was the main cause of the increase in the dollar in Colombia “but the comments about the tax reform are not helping.” But he warned that occasionally there are some investors leaving the country with their resources.

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