:format(jpeg)/cloudfront-us-east-1.images.arcpublishing.com/elespectador/IZYGSEB5F5D3XJRBFOW4UHDN7U.jpg "Price of the dollar today in Colombia: this is how it is quoted in exchange houses this January 31")
The Representative Market Rate (TRM) is $3,925.6 for this Wednesday, January 31.
Foto: Getty Images/iStockphoto – tsingha25
The dollar closed the day on Wednesday, January 31, lower, above $3,900, although it was close to this figure.
The closing price of the currency was $3,911.6. This translates into a drop of $14 with respect to the Representative Market Rate (TRM), set by the Financial Superintendence at $3,925.6, for today.
The maximum value that the dollar reached was $3,927.11 and the minimum was $3,903.35. While the average was $3,915.69.
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💸 The factors behind the dollar
This is a key week for the direction of the dollar in Colombia. From Tuesday the 30th to Wednesday the 31st, the United States Federal Reserve (FED) meets to decide the future of interest rates.
The Bank of the Republic did the same this Wednesday and chose to lower interest rates by 0.25%.
Although interest rates have a close relationship with the dollar, these decisions did not impact this Wednesday’s negotiations because they were known after the closing.
On the other hand, it was known that the unemployment figure for 2023 was 10.2%, according to the National Administrative Department of Statistics (DANE).
Both the local ones and those from the United States will cause movements in the price of the dollar.
The expectation for the dollar exchange rate indicates that the currency will end the month between $3,919 and $3,980, according to the most recent Fedesarrollo Financial Opinion Survey. Likewise, analysts predict a TRM of $4,025 for December 2024.
For their part, analysts at the Bank of the Republic estimate that the dollar will not rise beyond $4,003 in January 2024. Likewise, Banrep’s projections indicated a greater tendency towards a TRM between $3,839 and $3,939 during 2024.
“What can mainly affect the dollar is an adjustment in bonds (investment instruments in public debt). These have lost ground in the United States, because the market is no longer very optimistic about a reduction in interest rates at the Federal Reserve (Fed) in the short term. This has generated a recomposition of portfolios and is a variable that, for me, affects the markets and the dollar,” explains Diego Franco, head of Investments at Franco Capital Asset Management.
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