The dollar rose $122 at the close of trading

As expected by analysts, the dollar started the week with uptrend and it’s priced at over $4,000, following the second round of elections in which Gustavo Petro was elected as Colombia’s new president.

The senior foreign exchange officer of Credicorp Capital Juan Eduardo Nates points out that high dollar volatility is expected for this Tuesday.

“With Sunday’s results in favor of the candidate who was not favored by the marketa significant bounce of over 3.5% is expected, in over $4,040,” the analyst said.

Juan David Ballén, Director of Analysis and Strategy at Casa de Bolsa SCB, emphasized that given the volatility generated since last week, it could stabilize if the new president Gustavo Petro moderates his speech.

“This will have a big impact if Petro manages to appoint a finance minister who is well received by the market,” explains the analyst.

He also pointed out that the dollar’s long-term performance will depend on the policies of the president-elect.

He added that in the medium term there is a risk of a global recession, which, if one occurs, could lead the US currency into a higher trend by the end of the year.

Jackeline Piraján, economist at Scotiabank Colpatria, said the perceived reaction is essentially a reversal of the positive reaction the market had when learning the results of the first round of elections.

For his part, he pointed out that the move was also accompanied by a calmer international context, with international equities recovering and the dollar losing some ground against most currencies.

“In this context, we see that the market today revealed sentiment about the election results, with a penalty in the exchange rate. We believe that from now on, other types of factors will drive the next moves,” explains Piraján.