Dollar above $4,600 all-time high

This Tuesday, the dollar closed at $4,627.73 on average, which represented an increase of $114 against the Market Representative Rate (MRR), which for today’s trading day is at $4,513.28, as the risk of economic recession in the United States increases.

The opening price registered by the Set-FX platform was $4,590, while the maximum reached $4,663 and the minimum $4,589.9. During the day, more than US$30 million was traded through 64 transactions.

The quotation of the dollar has registered an upward trend since the electoral results were known last June 19. However, the rise of the currency has been explained, to a greater extent, by the international situation, especially by the risk of recession in the United States, as well as by the increase in interest rates by central banks to curb inflation.

Financial analysts also assured that fewer dollars are circulating in the country than are demanded.

“The solution is structural. Increase the sources of dollar income in our country. In this way, external shocks that cause the dollar to strengthen, as it is currently doing, will moderate,” said Juan David Ballén, director of Analysis and Strategy at Casa de Bolsa.

Another factor that may explain the upward behavior of the dollar is crude oil, as the Brent barrel, the reference for Colombia, fell 3.96% to US$102.86; while the West Texas Intermediate (WTI), also fell 4.20% to US$99.72.

OPEC’s first oil market outlook for 2023 suggests no relief for consumers, as more crude is needed from the group even though most members are already pumping at full throttle.

The Organization of the Petroleum Exporting Countries expects global oil demand growth to outpace supply growth by 1 million barrels a day next year. To fill the gap, OPEC would have to significantly increase production, but members are already well below the volumes needed at the moment due to lack of investment and political instability.

Crude oil prices remain above US$100 a barrel as the world’s oilfields and refining facilities fail to keep pace with the post-pandemic rebound in fuel demand. This exacerbates the cost-of-living crisis and threatens to push the global economy into recession.

Source: THE REPUBLIC

https://www.larepublica.co/finanzas/precios-del-dolar-y-petroleo-hoy-12-de-julio-de-2022-3401707