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Understanding the Factors Affecting the Price of the Dollar in Colombia: A Guide to Economic Trends and International Influences

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Understanding the Factors Affecting the Price of the Dollar in Colombia: A Guide to Economic Trends and International Influences

The dollar began the day this Tuesday at an average price of $4,023.12, that is, $23 more than the Representative Market Rate which for today stood at $3,999.91. The currency touched a maximum price of $4,046 and a minimum of $3,995.

Knowing where the dollar is going is especially difficult, because there are international and national factors that cause its price to rise or fall every day. In recent months, the volatility of the dollar has decreased and the greenback has settled at levels close to $3,900 and $4,000.

Among the macroeconomic factors that are preventing a significant decline in the price of the dollar is the high inflation in Colombia, as a result of a globalized phenomenon, but which in the country is falling at a slower speed than expected.

Likewise, interest rates in the United States are another variable to take into account, because the more affordable credit is, the greater the investment opportunities in countries like Colombia. In the long run, more greenbacks circulating in the country translates into a cheaper dollar.

In that context, it is important to keep in mind that there is only one week left until the meeting of the United States Federal Reserve (FED). This body is in charge of defining the direction of interest rates, or rather the cost of money, in that country. During 2023, the US dollar has been especially dependent on decisions made at the FED.

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