The dollar closed at an average of 3,785.66, reflecting a decline of 13.24 from today’s Representative Market Rate (TRM) of 3,798.90. This gap shows traders moving with caution as the market digests domestic cues and geopolitical headlines that can sway appetite for risk and drive currency flows. The session captured a snapshot of volatility that is typical when markets weigh policy signals, global demand, and the relative strength of the dollar against a basket of regional peers. In practical terms, the end figure suggests a modest easing for the dollar versus local and regional currencies, a trend that traders will likely monitor as the week unfolds and new data points emerge from both the domestic economy and major international markets.
The opening price recorded by the Set-FX platform stood at 3,770.10, with intraday movement highlighting an upside peak near 3,800 and a downside trough around 3,760.20. Through the session, liquidity moved through a brisk channel, as 1,472 transactions tallied up to a cumulative volume of 837 million. The day’s activity paints a picture of market participants adjusting positions amid shifting expectations for interest rates, inflation pressures, and risk sentiment across asset classes. Traders often look to such swings for clues about where the currency might settle in the near term, especially when technical support and resistance levels come into play and institutional orders begin to exert greater influence on price action.
Juan Eduardo Nates, senior currency partner at Credicorp Capital, commented that the Colombian peso rose to 3,817 before retreating, yet did not sustain beyond the 3,790 mark. He noted the currency’s struggle to break the 3,790 ceiling and its proximity to the next significant support around 3,750. His assessment suggests that the peso could continue to test these levels, with a potential bounce supported by domestic demand, export earnings, and portfolio flows, but facing renewed pressure if global risk sentiment shifts or if local policymakers signal a different stance on monetary tightening. For market participants, the sequence of moves—initial strength, followed by a pullback—often signals a tug-of-war between speculative bets and underlying fundamentals, reminding traders to watch for any policy statements or economic indicators that could shift momentum in the near term.
Across the global stage, U.S. futures gained on Friday as investors weighed the consequences of the Federal Reserve’s latest tightening stance alongside ongoing geopolitical strains stemming from the conflict in Ukraine. The yield on 10-year Treasuries moved lower, the Bloomberg Dollar Index eased, and currencies in emerging markets found some renewed footing. This combination can influence carry trades, commodity pricing, and regional risk assessments, with money managers balancing inflation signals against growth projections. The interplay among these factors often translates into short- to medium-term volatility in currency pairs, commodities, and equity indices, prompting traders to reassess hedging strategies and cross-asset correlations as new data arrives.
Oil prices retreated on Friday as concerns about supply tightened less than feared, aided by a partial restart of exports from Kazakhstan’s CPC crude terminal. Meanwhile the European Union remained divided on the question of a comprehensive embargo on Russian crude, a division that kept markets watching for any policy shifts that might alter global supply dynamics. Brent crude, used as a benchmark for Colombia’s energy market, dropped 1.25 percent to 117.54 dollars per barrel, while West Texas Intermediate declined 1.44 percent to 110.72 dollars. These movements reflect a balance between production news, demand signals from major economies, and the ongoing debate over sanctions leverage and energy security in a shifting geopolitical landscape. Traders often use such price action to gauge potential ripple effects in related markets, including currencies susceptible to energy exposure and import costs for gasoline and other refined products.
Attention shifted to political developments in Colombia, where the announcement of Gustavo Petro’s vice presidential slate intensified focus on who will join right-wing candidate Federico “Fico” Gutiérrez on the ticket. The public discourse intensified as analysts and voters awaited the formal confirmation, recognizing that the chosen running mate could influence campaign dynamics, policy priorities, and investor sentiment. In parallel, the government disclosed a financial initiative aimed at broadening access to financing across sectors, part of a broader effort to stimulate economic inclusion. The plan includes targeted loans for those operating in informal sectors and for small and medium-sized agricultural producers, coupled with measures intended to foster deeper participation in capital markets. By expanding credit avenues and capital access, policymakers hope to support household consumption, productivity, and small business resilience, while also channeling more savings into productive investment channels. These steps are being watched closely by market watchers for potential impacts on growth trajectories, credit conditions, and regional financial stability, especially in a climate of global uncertainty and fluctuating capital flows.
Overall, the market narrative today painted a picture of cautious optimism mixed with prudent risk management. Traders monitored policy signals, currency resilience, and energy markets to place bets about the near-term path of exchange rates, interest rates, and the broader macro environment. As data continues to arrive and political developments unfold, the balance between domestic fundamentals and external pressures will likely determine how currencies and commodities respond next. Market participants remained attentive to any new guidance from policymakers, as well as to the evolving economic data that could shift expectations for inflation and growth in the weeks ahead, potentially altering the course for trade, investment, and monetary policy across the region.
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