He Colombian peso is strengthened before the US dollar for the second consecutive dayreaching its highest level since February 24.
The USD/COP today tested a daily maximum in 4,120.60 and then fall to a minimum of 10 days at 4,094.01.
The US dollar is quoted in front of the Colombian peso about 4,102.84, losing 0.25% in what we have been working on.
The Colombian peso is strengthened with the moderation of US tariffs to Mexico and Canada
- The weakening of the dollar remains promoted by the uncertainty generated by ads on tariffs. As the last novelty, the White House confirmed yesterday that pausaba for a month the tariffs of the automobile sector to Mexico and Canada.
- The Manufacturers of US cars Ford, Stellantis and General Motors asked the government to be exempted to not be at an economic disadvantage. The US Secretary of Commerce, Howard Lutnick, said that tariffs on the sector will resume on April 2, when reciprocal tariffs will also begin to apply to other countries.
- This Friday the data of Colombia inflation for the month of February. A moderation is expected in the annual prices of 5.13% from 5.22% in January. At the monthly level, the CPI could grow by 1% compared to the previous 0.94%.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
