The dollar closed higher on Tuesday following a slight decrease on Monday as the market awaited the Federal Reserve’s monetary policy review. Talks between Israel and Hamas continued to impact oil prices. The currency closed at an average price of $3,898.90, $25.46 above the TRM. International markets were in a waiting phase ahead of the Federal Reserve’s decision, with investors cautious about a possible restrictive stance from Fed President Jerome Powell.
The Bank of the Republic of Colombia is expected to resist pressure from the government to accelerate interest rate cuts, with a survey of economists predicting a half percentage point reduction to 11.75%. Colombia maintains the highest interest rates among major Latin American economies with inflation targets.
Oil prices rose after negotiations between Israel and Hamas offered hope for a ceasefire, despite continued Houthi attacks in the Red Sea. Brent crude oil futures for June and U.S. West Texas Intermediate (WTI) futures both showed gains after seeing losses on Monday.
Investors are closely watching the Federal Reserve’s decision on interest rates scheduled for Wednesday, with market movements expected to reflect the outcome of the meeting.