The dollar closed the day higher, as investors prepare for a turbulent presidential race and the Federal Reserve’s upcoming rate decision. At the local level, Congress is discussing a proposal that could potentially increase the national debt.
The currency closed on Thursday higher at $4,311.93, placing $18.02 above the Representative Market Rate, which was at $4,293.91. The North American currency reached a maximum price of $4,338.50 while the minimum was $4,285.75. 2,169 transactions were recorded for an amount of US$1,231 million.
According to Bloomberg, The bill that the Government is advancing could increase the national debt up to 15pp of GDP over the next decade. The bill would require the government to transfer 46.5% of its revenue to cities and provinces by 2036, from 26% currently. All this caused the Colombian peso to have a great devaluation.
Roberto Steiner, co-director of the Bank of the Republic, warned that The implementation of this bill will lead the country to a “fiscal disaster.”
Markets analyze the possibility of a Republican victory in the US Congress. Full Republican control could mean increased spending and tax cuts at a time when the country’s debt is already very highwhich would put pressure on Treasury bonds.
As Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. line up to report next week, Colin Graham, head of multi-asset strategies at Robeco, said: ““Earnings expectations have been lowered more this quarter than in previous quarters and the bar to beat them was really low this time.”
Oil prices rose more than 1% on Thursday, reversing some of the previous session’s lossesas the Middle East conflict and reports of North Korean troops willing to help Russia in Ukraine kept operators in suspense before the presidential elections in the United States.
Brent crude futures rose $1.26, or 1.7%, to $76.22 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures rose $1.26, or 1.8%, to $72.03.
Oil prices have risen about 4% this week, after giving up more than 7% last week on concerns of oversupply and weak demandand by the perception of a decrease in tensions in the Middle East.
