The Colombian dollar closed on October 28, 2025, up $30.46 at $3,874.66, driven by expectations of a US Federal Reserve interest rate cut. Oil prices fell for the third straight day amid US sanctions on Russian companies and a potential OPEC+ production increase. Global investors are watching the Trump-Xi Jinping meeting scheduled for Thursday in South Korea.
In the Colombian market, the US dollar stabilized on Tuesday, October 28, 2025, ahead of the expected Federal Reserve rate cut. It closed at $3,874.66, up $30.46 from the Representative Market Rate (TRM) of $3,844.20. During the session, it hit a low of $3,840 and a high of $3,898.88, with 1,967 transactions totaling US$1,404 million. At 10:00 a.m., it traded at $3,866.06, rising $21.86 against the TRM.
This movement occurs amid a global context where the dollar yields ground to rivals like the euro and pound, driven by the Fed's impending decision. A 25 basis point cut is anticipated, the second in recent months. "We don't expect formal guidance on the December meeting, but if asked, Chairman Powell will likely feel comfortable referring to the September dots, implying a third cut in December," said David Mericle, chief US economist at Goldman Sachs.
In the oil sector, Brent crude dropped $0.81, or 1.23%, to $64.81 per barrel, while West Texas Intermediate fell $0.71, or 1.16%, to $60.6. Prices declined 2% for the third day, as investors assessed US sanctions on Russia's Lukoil and Rosneft over the Ukraine war. "The oil market is still debating whether the latest sanctions will affect Russian crude exports," noted Giovanni Staunovo, UBS analyst. OPEC+ is leaning toward a modest production increase in December.
Focus is on the Trump-Xi Jinping trade meeting Thursday in South Korea, which could impact energy and currency markets.