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

Global currencies rebounded in the second quarter of 2020 against a declining dollar, but not before several plummeted to record lows.

It was a tale of two halves in currency volatility for the second quarter of 2020 as the pandemic-related volatility from the opening quarter carried over into the second quarter with several key currencies suffering all-time lows against a rising U.S. dollar before soon recovering as the dollar began to lose value.

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Fears of coronavirus and a global slowdown jolt the commodities market causing huge declines in the value of commodities-based currencies.

Commodites-based currencies in both developed and emerging market economies took a beating last week as the commodities market plunged 7.28% as fears of a global slowdown compounded by the relentless spread of the coronavirus hit currency markets around the world.

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Global currency volatility fell sharply in 2019 as the dollar and commodites market remained mostly stable.  "Fewer global hot spots."

World currencies took a respite from volatility in 2019 as a stable U.S. dollar and a smoother commodities market -- all factors that have contributed to volatility in recent years especially in emerging market and African countries -- had a calming effect in 2019 plunging global currency volatility to its lowest level in years. 

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Several key currencies rebound in the fourth quarter after reaching all-time lows against a falling U.S. dollar in a possible sign of growth.

Global currency values surged against the U.S. dollar in the final quarter of 2019 as the values of the 126 global currencies tracked by the Currency Volatility Index (CVI) were up by an average value of 1.07 percent against the dollar.  See which currencies had the largest gains against the dollar in this CreditPulse exclusive.

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The volatility of New Zealand's currency is at its highest point since the second quarter of 2015, the year of the commodities crash.

New Zealand's dollar declined 6.72 percent against the U.S. dollar in the third quarter marking the first time since the commodities crash of 2015 that the currency is among the world leaders in quarterly volatility.

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South America replaces Africa as the region with the world's most volatile currencies as overall volatility rises in the third quarter. 

Global currency volatility rose in the third quarter of 2019 to the highest level in four years largely as the result of huge currency declines in Venezuela and Argentina, two of Latin America's most troubled economies, according to the latest data from the Currency Volatility Index (CVI) compiled quarterly by CreditPulse.

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Global economic headwinds and political instability create currency pressures as several currencies fall to all-time lows against the dollar.

The U.S. dollar has fallen 0.6 percent in the first six months of 2019, but that still hasn't prevented a number of currencies in Africa, Asia and the Caribbean from suffering record declines despite the fact that global currencies are less volatile than last year at this time.

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Overall volatilty declined slightly from the previous quarter but was spread more evenly around the world.  Two hotspots in the Caribbean. 

Global currency volatility increased in the second quarter of 2019 as 16 of the 125 currencies tracked in the Currency Volatility Index (CVI) had volatility rates of 2 percent or more compared with only 11 in the opening quarter.

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Argentina's currency falls to a new low against the U.S. dollar for the second time in two years as economic and political concerns deepen.

In March, 2013, Argentina's currency, the peso, had an official rate of 5.0973 to the dollar and a black market rate of 8.4431.  On Friday, the peso reached a value of 45.946 against the dollar, an all-time low for a nation with a history of currency woes.

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Venezuela's beleagured currency was easily the most volatile in a year that saw overall instabilty increase at the highest rate since 2015.  

Venezuela's currency was the most volatile in the world in 2018 as its complex, three-tiered currency system finally gave way to hyperinflation, a collapsing economy and the increased authoritarian rule of Nicholas Maduro.

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