At the close of the day this Friday, the dollar in Colombia rose 37 pesos and ended the session at an average price of 3,829 pesos. The TRM for the day was 3,792 pesos.
With this rise, the US currency adjusted its seventh bullish week in the country. Despite the strong corrections of the dollar at the global level throughout the month of August, in the Colombian market the currency seems to have no ceiling and continues its upward path.
Between Tuesday and this Friday, the foreign currency was up $ 46. At the start of the week the TRM was $ 3,783.
WHY IS THE PRICE OF THE DOLLAR NOT FALLING IN COLOMBIA?
Issues such as extensions to quarantines, the slow implementation of reactivation plans for the country’s main industrial centers and other issues that generate great expectations such as a possible post-pandemic tax reform, they limit the attractiveness of investors to the local market, despite being one of the “cheapest” markets in the world today.
According to Alexander Ríos, an analyst at Inverxia by Strategic, the EEM index, which indicates the performance of emerging markets, adjusts 5 weeks upward, managing to regain the level prior to the pandemic and indicating an appetite for risk in these types of countries; However, economies such as Colombia do not seem to be on the radar of large international portfolio investors, which implies a slow recovery in the local stock market and a dollar that does not change its bullish roadmap.
Inverxia by Strategic calculates that for next week, the technical trading range of the currency will be between $ 3,800 and $ 3,900 if the upward trend and low appetite for Colombian risk assets continue.
If a change of direction occurs, the objectives will be between $ 3,780 and $ 3,730 pesos per dollar. However, the structural trend for the currency in the Colombian market continues to be bullish.
The US currency is trading above 3,600 pesos since the coronavirus pandemic appeared in the country last March, even in a week it was above 4,100 pesos.
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