The dollar is more expensive than ever in Colombian and Chilean pesos

The dollar is more expensive than ever in Colombian and Chilean pesos

Recent measures by the US Federal Reserve seem to be working. Not to curb inflation, for now, but to strengthen the dollar, something that is being reflected in the value of Latin American currencies such as the peso, both in Colombia and Chile.

Both national currencies have fallen to their worst levels of devaluation with respect to the North American this weekwhile international markets continue to suffer both in the case of traditional ones and in the world of cryptocurrencies.

As for Chile, the dollar is trading above 950 Chilean pesos (CLP) at the time of writing this article. For its part, In colombia the dollar is currently hovering around 4,280 Colombian pesos (COP) in the market for the first time.

At the beginning of the year, the dollar was trading below 800 CLP, so the increase in the United States currency in Chile is around 20% so far in 2022. Meanwhile, inflation in the southern country exceeds two digits.

In Colombia, inflation does not reach double digits, but it is presenting its worst records in more than two decades, according to local sources. all while The price of the dollar went from 3,780 COP at the beginning of this 2022 to 4,280 pesos which registers at the time of writing, for an increase of just under 20% as well.

The Colombian and Chilean pesos have devalued sharply against the dollar. Source: Investing.

The dollar getting stronger

In parallel, the dollar index is at its highest point in 20 years. As the records of investmentthe US currency index has returned to 2002 levels.

Considering the global economic crisis and the entry into a recession, this is a remarkable achievement attributed by many analysts to the recent actions of the Fed, which has chosen to raise interest rates on a recurring basis.

The dollar is more expensive than ever in Colombian and Chilean pesos
The dollar index is at its best levels in 20 years. Source: Investing.

As we have continually reported on CriptoNoticias, all signs point to an impending recession. In fact, there are analysts who consider that the world has already entered it and that the crisis will only worsen in the near future.

This crisis has even touched the euro. The currency of the European Union also fell recently against the North American, with its worst levels in 20 years, as we reported this Tuesday, July 5, in this newspaper.