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Although the dollar began to fall sharply, it closed the first day of the year with an increase of over $ 20 to $ 3,449.
On the first day of the year, the Colombian dollar behaved volatile. It started at more than $ 20 to $ 3,404 due to the optimism surrounding COVID-19 vaccination campaigns. But in the end, the currency closed at $ 20 higher at $ 3,449 due to uncertainty surrounding the OPEC + agreement and the Georgia United States election.
As of December 28, the exchange rate has lost $ 80 due to a combination of rising oil prices and optimism about COVID-19 vaccines.
In fact, on Monday, European stock markets reacted positively to advances in vaccination in the United Kingdom: the British nation became the first country to use the AstraZeneca / Oxford vaccine.
Markets are also looking forward to Monday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. The bloc will decide whether to continue its plan to open taps moderately in February, at about 500,000 barrels a day.
However, restrictions due to the expansion of COVID-19 in many countries and the foreseeable decline in consumption are an obstacle to increasing oil production.
The Colombian dollar has been weak for two months: since the results of COVID-19 vaccines became known, large investment flows have returned to emerging markets. In November alone, fund managers invested about $ 76.5 billion in securities in developing countries, according to the Institute of International Finance (IIF).
The phenomenon caused the exchange rate to lose almost $ 400 in a few weeks, going from $ 3,800 to about $ 3,400. That is, the Colombian dollar has returned to pre-pandemic levels and, according to the latest Fedesarrollo financial opinion poll, analysts expect the currency to average $ 3,450 in the first quarter of 2021.