economy
May 5, 2026
Dollar today in Colombia: foreign exchange market would not escape volatility due to uncertainty over elections and oil
The rise in crude oil and geopolitical uncertainty impact the behavior of emerging currencies. Photo:
TL;DR
- The Colombian dollar began May 5th in a highly volatile environment influenced by electoral uncertainty, geopolitical tensions, and oil market dynamics.
- The exchange rate closed May 4th at 3,728.99 pesos, an increase of 94.69 pesos from the previous day, reaching a high of 3,730.74 pesos.
- External factors include a global dollar strengthening and a 5.8% rise in Brent crude oil to $114.4 per barrel, driven by heightened Middle East tensions.
- The Banco de la República's decision to keep interest rates at 11.25%, contrary to analysts' expectations of an increase, has altered market expectations.
- Political uncertainty from presidential elections, fiscal concerns, and government debt emissions will continue to affect dollar volatility in the coming months.
- Projections indicate the dollar will remain in a lateral trend, near 3,700 pesos during the second quarter of 2026, with technical support at 3,600 pesos and resistance at 3,750 pesos.
- Technical indicators like the RSI (64.3 points in neutral zone) and MACD histogram suggest slight upward pressure on the dollar in the short term.