US Dollar at Its Lowest Point Since 2022 in Colombia

On April 3, 2024, the exchange rate between the Colombian peso and the US dollar dropped to its lowest since June 2022. That day, one US dollar was worth between 3,796 and 3,813 Colombian pesos (COP), marking a decrease of 31.89 pesos from the day before. This change breaks a trend where the dollar had been gaining value for four straight days, with a total decline of 7.85% over the year.

Exchange Rate Trends

Despite the uncertainty over the direction of interest rates in the United States, the dollar managed to stabilize slightly on Wednesday. This adjustment came after economic reports led many to think that the Federal Reserve might not cut interest rates soon.

The US dollar’s decline in Colombia is similar to trends in other Latin American countries. In Chile and Peru, the dollar fell by 1.16% and 0.56%, respectively. However, in Mexico and Brazil, it increased by 0.26% and 0.35%.

What Influences the Exchange Rate?

Decisions by the Federal Reserve on interest rates are key to the future of the dollar’s value. Likewise, in Colombia, government actions, especially those related to President Gustavo Petro’s plans for pension reform, could affect the dollar’s path.

This situation shows the complex relationship between global economic factors, national policies, and market opinions. Everyone is watching closely to see which way the dollar will go, highlighting the ever-changing nature of financial markets.

The exchange rate, or the price of the dollar, can change often due to many factors. These include how much demand there is for the currency, interest rates, the overall state of the world’s economy, and political or social events.

The dollar’s trading price is essentially what it’s worth compared to another country’s currency. This value can fluctuate in the currency markets, depending on supply and demand.