Pacific Exchange Rates Report for October 27th – 31st

QU Economics Research Team
1 day ago
2 min read

By: Patrick Gorman, The Quinnipiac University Global Economics Research Team

Pacific Currencies Index

Source: Eurostat 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.

For the week of October 27^th – October 31^st, there were similar performances among the Australian Dollar (green) and the South Korean Won (red), as well as similarity among the New Zealand Dollar (red) and the Japanese Yen (maroon). The Australian Dollar (green) and the South Korean Won (red) dipped throughout the week and slightly rebounded to end the week. The Australian Dollar (green) ended the week about .5% weaker and the South Korean Won (red) ended the week about .7% weaker. The New Zealand Dollar (blue) and the Japanese Yen (maroon) stayed relatively flat in the first half of the week and then had a sharp increase later in the week, with the Japanese Yen (maroon) ended up around .8% and the New Zealand Dollar ended up .5%.

Pacific Historical Trends

Source: Eurostat 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.

For the week of October 27^th – October 31^st, the Japanese Yen (JPY) bounced back to its three-month high, while New Zealand Dollar (NZD) almost hit a three-month high. The Australian Dollar (AUD) dipped a bit below where it has been in the past weeks and the South Korean Won (KRW) had a small decrease from former highs. All currencies except the Australian Dollar are at higher levels than where they were 3 months ago.

Additional Reading

Wall Street Says the Yen's Comeback Could Be Just Beginning

This article talks about how some Goldman Sachs strategists believe that the Japanese Yen could be starting a long-term strengthening. It mentions how potential political decisions could change this however the strategist believe that potential policy changes could help the currency.