Dollar price in Colombia February 1 | colombia news

The dollar in Colombia closed with a decline on the first day of the month. After the market closes, the currency is quoted $3,888 After an important day for the markets, as reactions are expected to the decisions taken last Wednesday by the central banks of Colombia and the United States regarding interest rates.

The closing price represents a decline of $23 compared to the previous day’s close ($3,911.6).

For its part, the Representative Market Rate (TRM) was set by the Financial Superintendent $3,915.56 For this Thursday, February 1st.

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💸Factors behind the dollar

This is an important week for the direction of the dollar in Colombia. Last Tuesday the 30th and Wednesday the 31st, the United States Federal Reserve (FED) met to decide the future of interest rates.

The Central Bank of the United States unanimously decided to keep interest rates between 5.25% and 5.5%, thus completing four consecutive pauses.

Although the economy of the United States is developing positively as before (inflation and the labor market closed in 2023 with unpredictable consequences), there will be a cut this year, although not at the next meeting, Fed Chairman Jerome Powell detailed. Gave.

The Bank of the Republic did the same this Wednesday and decided to reduce interest rates by 0.25%.

Fluctuations in interest rates are closely correlated with the dollar, which is why the impact of these decisions is visible in this Thursday’s trading day and not in Wednesday’s trading as they are revealed after the market closes.

On the other hand, it was known that according to the National Administrative Statistics Department (DANE), the unemployment figure for 2023 was 10.2%.

Both local and incoming from the United States will cause fluctuations in the price of the dollar.

According to the latest financial opinion survey, expectations for the dollar exchange rate indicate that the currency will end the month between $3,919 and $3,980. fedeserolo, Similarly, analysts estimate TRM for December 2024 at $4,025.

For their part, analysts of Bank of the Republic He estimates that the dollar will not rise above $4,003 in January 2024. Similarly, BanRep projections indicated a higher trend towards TRM between $3,839 and $3,939 during 2024.

“What could mainly impact the dollar is the adjustment in bonds (investment instruments in public debt). They have lost ground in the United States, as the market is no longer very optimistic about the Federal Reserve (Fed) cutting interest rates in the short term. It’s created a realignment of portfolios and that’s a change that, to me, impacts the market and the dollar,” he explains. diego francoHead of Investments at Franco Capital Asset Management.

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