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The Dollar continues to rise

For the first time in history, the dollar reaches $ 4,100 at the exchange rate in Colombian currency. March 12, 2020 will be remembered as the day the dollar first topped $ 4,000. The crisis generated by the collapse in oil prices plus the expansion of the Covid-19 triggered the price of the US currency, which had its last impulse with the decision of President Donald Trump to cancel all trips between his country and Europe, except to the UK.

At 8:00 a.m., the dollar registered an average trading price of $ 4,030, which represented an increase of $ 194.85 against the Market Representative Rate (TRM), which stands today at $ 3,835.15. The currency opened the day with a price of $ 4,030, but it climbed to a maximum of $ 4,100 at around 8:05 a.m.

At 7:23 a.m., the WTI contracted 5.76 and reached $ 31.08 after losing $ 1.90. In the case of Brent, it stood at US $ 33.74 after falling US $ 2.05 after losing US $ 5.73. Oil began to reverse its profits, after the announcement by the President of the United States, Donald Trump, who asked to cancel trips to Europe after the virus spread in his territory.

The announcement not only lowered oil, but also the actions of European airlines, which were already being hurt by the virus. According to the Bloomberg report, shares of Air France-KLM fell 8.89, while shares of Lufthansa and British Airways parent IAG dropped nearly 10. Norwegian Air, meanwhile, contracted 24.

The impact of the ban will be more than substantial for the main European airlines in relation to the effects on flights from China, Daniel Roeska, an analyst at the Bernstein firm, told Reuters. "The ban effectively stops travel from the Schengen area to the United States," he said.

The actions in the United States presented the same trend. Reuters noted that Wall Street futures touched a decline limit for the second time this week. The S&P 500 was down 139.25 points, or 5.08, to its limit decline of 2,601, indicating how much the benchmark index could fall when operations begin.

Dow Jones futures were down 1,231 points, or 5.22, while Nasdaq 100 were down 402 points, or 5.02. In the case of gold, the quintessential safe-haven asset, rose 0.26 to US $ 1,638.8 per ounce. Gold futures in the United States were unchanged at $ 1,642.20 per ounce.

The ban is a big surprise and a big surprise to the market and shows that investors have yet to see the full financial consequences of the coronavirus outbreak, Kyle Rodda, an analyst at IG Markets, told Reuters. On the other hand, traders are selling gold to finance margin calls, limiting metal profits, Rodda added.

"Market movements suggest that the monetary stimulus has reached its limits," said Lucas Bouwhuis, portfolio manager at Achmea Investment. "Most of the stimulus must come from the fiscal side and we are still not seeing enough."

 

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