Pacific Exchange Rates Report for April 22 – 26
By: Khadija Farooqi, The Quinnipiac University Economics Research Team
Pacific Currencies Index
Source: Yahoo Finance and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.
Throughout the week of April 22nd – 26th, the currency markets displayed distinct performances at varying levels. Starting with the most volatile, the South Korean won (red) witnessed significant fluctuations, swinging between upturns, downturns, and stability, ranging from 0.4% to 0.6%. Meanwhile, both the Australian dollar (green) and New Zealand dollar (blue) exhibited a consistent parallel downward trend, with the AUD experiencing a notable 0.9% drop and the NZD surpassing it with a steep 1.5% decrease. In contrast, the Japanese yen (maroon) remained relatively stable throughout the week (as observed in recent weeks), showing only a 0.5% increase midweek after a period of steadiness.
Pacific Historical Trends
Source: Yahoo Finance and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency. The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.
During the week of April 22nd – 26th, the currencies displayed a range of behaviors. The Australian dollar (AUD) notably experienced a significant decline, hovering just above its three-month average and offsetting its prior weeks of ascent. On the other hand, the Japanese yen (JPY) continued its upward trend over the past month, instilling optimism for the weeks ahead. Both the South Korean won (KRW) and the New Zealand Dollar (NZD) ended up declining in fluctuations slightly above the upper bound, counteracting the substantial increases they had earlier in the month. This week, three out of the four currencies reversed their previous weeks' gains. Hopefully upcoming weeks will provide them with better upturns.
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