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This week the dollar It started downwards, after it closed with a rise on Friday that took it to $3,913.1. Although he fell to $3,897 after finishing the day on Monday.
Now, the currency continues the trend after closing the negotiations this Tuesday, May 7, lower, at $3,888. This represents a decrease of $9 from the previous close.
The maximum price reached in the negotiations was $3,891 and the minimum was $3,876.2. While the average was $3,884.84.
For its part, the Representative Market Rate (TRM) remained at $3,894.23 for Tuesday.
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Interest rates: a key issue
One of the key issues for the movement in the price of the dollar is what happens with the Federal Reserve (FED). As the central bank of the United States, it has led the fight against inflation by keeping interest rates high. This seeks to reduce or keep consumption at bay (because with expensive credit people lose incentives to buy), which in turn would put downward pressure on the prices of the main products and services.
The problem is that the strategy has not given the expected results (inflation has slowed, but at weak levels), so the FED considers it prudent not to relax its measures.
This has an impact on the price of the dollar to the extent that it is cheaper against the Colombian peso as there are more greenbacks in circulation and, as rates are high, there is not as much incentive to invest in countries like ours. . In other words, expectations are that when rates are lowered the dollar will become cheaper in Colombia.
Dollar price projections this week
▶️ Experts suggest that the currency will be between $3,800 and $4,000, at most, during the second week of May.
▶️ Analysts who participated in the Fedesarrollo Financial Opinion Survey consider that April would close with an exchange rate that will be in a range between $3,830 and $3,875, with $3,850 as the median response.
▶️ In the latest monthly expectations survey of economic analysts (EME) from the Bank of the Republic, 58.5% of experts expected the dollar to close the month of April between $3,800 and $3,850. For the end of the year, the currency projections are distributed, but the majority is in the range of $3,900 and $4,200.
