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

A declining dollar, low crude oil prices and inflationary pressures from central bank stimulus actions send global currencies on different paths. 

Aided by a weaker dollar, the values of the yen, euro, pound and yuan surged along with many other currencies across the globe in the second quarter of 2020, while inflationary pressure from central bank stimulus spending and stubbornly low oil prices sent the values of other currencies into a tailspin.

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Latin America is starting to resemble Africa as the area of the world with the most problem currencies as five are among the top 10 decliners against the dollar.

Two Latin American countries -- Venezuela and Brazil -- lead the world with the largest currency declines against the dollar in the first half of 2020 with Mexico, Argentina and Colombia not far behind in an ominous sign for a region that is rapidly becoming the world's hot spot for troubled currencies.

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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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