Dollar in Colombia Returns to Over the 3,300-Peso Level and Hits Levels Not Seen Since July

The Colombian peso displayed signs of recovery against the US dollar on Thursday, September 24, reaching a closing price of 3,328.45 pesos per dollar. This represents a notable increase of 64.06 pesos compared to the previous day's Representative Market Rate (TRM) of 3,264.39 pesos. Throughout the trading day, the dollar briefly touched the 3,300-peso mark, marking a level not seen since last July.

The market experienced significant fluctuations during the day, with a volatility range of 102 pesos. The trading volume reached a substantial 1.585 billion US dollars, and the TRM was recorded at 3,264.39 pesos, a 55.73 peso increase from the previous day. Mauro Acevedo, a foreign exchange and derivatives strategist at Corficolombiana, explained that the market's response was driven by investor adjustments to the Federal Reserve's more aggressive stance.

Rodrigo Lama, Global66's chief business officer, noted that geopolitics has taken center stage this week, similar to the situation last week when the Federal Reserve made its decision. As the immediate September decision is already priced in, market participants are now focusing on profit-taking and repositioning, looking for potential signals of future developments.

The UN General Assembly and the Trump-Xi Jinping bilateral meeting are identified as the key events with the highest potential to impact asset markets, with oil and the dollar serving as primary indicators.

Experts express optimism about the potential impact of these developments on the dollar. A favorable scenario, in which the US-China meeting concludes without concrete agreements and Middle East tensions escalate, could lead to a rise in oil prices and a subsequent strengthening of the US dollar. In this case, emerging-market currencies, including the Colombian peso, could lose value.

Conversely, if the meeting results in agreements and tensions decrease, oil prices might stabilize, leading to a decrease in global financial volatility and a potential decline in the dollar's strength. Based on these projections, the Colombian peso could regain value against the US currency, potentially reaching a range between 3,100 and 3,140 pesos per dollar.