Currency Volatility Report

Currency markets are highly sensitive to politics and economics.  Thus, currency volatility is a key sovereign risk indicator.  CreditPulse provides monthly reports for the world's most commonly traded currencies and semi-annual and annual reports for all world currencies.

Recent Articles

Turkey's already troubled currency, the lira, fell to its lowest level ever against the dollar after President Donald Trump threatened Turkey with more tariffs. 

The Turkish lira plunged to 6.93 to the U.S. dollar after briefly hitting 7.00 to the dollar on Monday for it's lowest value ever after Turkish President Recep Tayyip Erdogan and U.S. President Donald Trump engaged in a heated exchange over tariffs and economic policy.

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Latin America has replaced Africa as the region with the world's most volatile currencies as emerging markets worldwide come under greater stress.

Venezuela and Argentina, two of Latin America's most unstable and anti-market economies in recent years, are in trouble once again as their respective currencies were the most volatile in the world during the second quarter of 2018, according to the Currency Volatility Index (CVI).

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Eight years of economic and financial sanctions by the United States and the European Union have taken a tremendous toll on Iran's currency. 

In Februrary 2010, the hard-line Islamist government of Iran, one of the world's most oil-rich nations, decided to began the process of enriching uranium allegedly as fuel for a nuclear reactor, according to information from the Arms Control Association.

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After a brief recovery, Argentina's currency and capital markets are once again in trouble as investors begin to sour on the country's prospects.

Argentina's currency, the peso, hit an all-time low on Tuesday closing at 22.476 against the U.S. dollar, a decline of 22 percent since the beginning of the year and a 46 percent drop since the beginning of 2017, the last time that the currency actually increased against the dollar.

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Venezuela's massive devaluation and the slide in Sudan's currency set the pace for renewed volatility in global currency markets for 2018.

After months of calm, currency markets are rumbling again as the volatility rate for global currencies reached the pivotal 1.50 percent threshold in the first quarter of 2018, the highest quarterly average since the fourth quarter of 2016, according to the lastest data from the Currency Volatility Index (CVI).

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The unexpected decline in the U.S. dollar had a dramatic affect on the value of many world currencies with three in particular worth noting.

The war-torn nation of Syria and four African nations -- the Congo, Liberia, Ethiopia and Nigeria -- suffered huge currency declines in 2017 accounting for a large portion of the world's currency instability even though a majority of the world's currencies actually gained in value against the U.S. dollar.

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World currencies were less volatile in 2017 as the Currency Volatility Index fell for the second straight year due to Syria and a drop in the U.S. dollar.

After three years of instability, global currency volatility settled back to a normal level in 2017 as the average volatility percentage fell to 2.78, a 9 percent drop from the 3.04 percent average the year before, according to the 2017 data from the Currency Volatility Index (CVI) of 122 currencies compiled by CreditPulse.

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War-torn Syria leads the way in currency volatility for the third quarter as the result of yet another devaluation as world currencies become slightly more erratic. 

Syria's currency, the pound, was the world's most volatile in the third quarter with a volatility rate of 21.3 percent followed by Liberia at 10.6 percent and Nigeria, Africa's largest country, at 6.7% as overall currency volatility edged upward slightly from the previous quarter.

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Dollar decline creates upward movment with many world currencies reducing volatility as African currencies still lead the way in declines.

World currencies were less volatile in the first quarter of 2017 with an average volatility of 1.15 percent, down from the 1.66 percent mark in the final quarter of last year largely due to a 2.74% decline in the U.S. dollar, according to the Currency Volatility Index (CVI).

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Devaluation sends Egypt's currency in a free fall against the U.S. dollar easily making the pound the most volatile currency in the fourth quarter of 2016.

The Egyptian pound was the world's most unstable currency in the fourth quarter of 2016 with a volatility percentage of 24% far outpacing the Turkish Lira as the second most volatile currency at 5.83%, according to the latest results of the Currency Volatility Index (CVI).

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