Pacific Exchange Rates Report for February 17th – 28th
By: Gabriel Kukulka, 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.
Between February 17th and February 28th, the Japanese yen (maroon) was the only tracked currency to decline in value relative to the United States dollar, falling by 0.5%. In contrast, the New Zealand dollar (blue) and the Australian dollar (green) both saw significant gains, each rising by 2.3% over the two-week period. The South Korean won (red) also increased, though more modestly, increasing by 1.1%.
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.
Heading into March, we see familiar trends in the trajectory of the tracked Pacific exchange rates. The Australian dollar, South Korean won, and New Zealand dollar all followed a similar pattern in February—initially losing value relative to the United States dollar before rebounding as March began. The one outlier is the Japanese yen, which has continued to weaken against the U.S. dollar since mid-January. Over the last two weeks of February, the yen fell to a three-month low and will be an important exchange rate to watch closely in March.
Additional Reading
As of March 3rd, the Japanese yen has managed to hold modest gains against the U.S. dollar. Mixed with steady economic growth and persistent inflation, investors are increasingly expecting the Bank of Japan (BoJ) to raise interest rates yet again. However, BoJ Governor Kazuo Ueda has warned about the uncertainty surrounding U.S. President Donald Trump’s proposed tariff plans and their potential impact on global monetary policy. These concerns are keeping some investors cautious, limiting stronger bullish momentum for both the yen and the U.S. dollar. With key U.S. economic data scheduled for release this week, markets will be watching closely for signals that could shape sentiment around both currencies.
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