He Colombian peso continues to reach new maximums of almost two months, reaching Thursday at its highest level against the US dollar since April 3.
The USD/Cop has fallen into the American Opening to 4.107.97, its lowest level in eight weeks. Previously, the pair touched a daily maximum at 4,125.23.
The contribution of the USD/COP at the time of writing is 4,112.86, with the torque losing 0.30% daily.
The Colombian peso benefits from the loss of force of the dollar after the moderation of euphoria by the cancellation of Trump’s tariffs
- The recent ones Kevin Hassett statementsEconomic Advisor of the White House, they have supposed a jug of cold water for the markets and the dollar, since it has been confident in the success of the appeal that the Trump government will make against the court ruling that late yesterday sentenced that Trump’s tariffs were not valid. Hasset has also assured that the decision on tariffs will not affect the ongoing trade agreements.
- The dollar index (DXY), which shot up after the news in the Asian opening, reaching maximum nine days, has lost all the land earned at this time.
- Colombia lives today its second national unemployment day. The unions called a 48 -hour strike started yesterday, demonstrating throughout the country to support the popular consultation promoted by Gustavo Petro’s government to promote social reforms. The president of the National Federation of Merchants (Fenalco), contrary to mobilization, called the act as harmful to the economy, ensuring that it will cause losses above 278,000 million dollars per day.
- Colombia will publish tomorrow its April unemployment data. In March, the unemployment rate fell to 9.6%, its lowest percentage in three months.
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.
