Pacific Exchange Rates Report for February 26th – March 1st

By: Khadija Farooqi, 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.  

During the week of February 26th – March 1st, the currencies initially followed similar trajectories before diverging midweek. Notably, the South Korean won (red) showed improved stability compared to the previous week, with a modest 0.7% decline throughout the week, yet still not reverting to its typically volatile nature. The most reactive performers this week were both the Australian dollar (green) and New Zealand dollar (blue), initially holding steady against the USD until February 28th, where they both depreciated by 0.4% and 0.3% respectively before stabilizing briefly. Post-February 28th, the AUD experienced a 0.7% decline, resulting in a 1% overall decrease for the week, while the NZD faced a steeper 1.1% depreciation, ending with a total 1.8% decline. Conversely, the Japanese yen (maroon) remained steady until February 28th, with a slight 0.1% dip before rebounding with a 0.4% increase by the week's end, marking the most significant gain of the week.

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. 

Throughout the week of February 26th to March 1st, all currencies experienced declines against the USD. The Australian dollar (AUD) dipped below the lower bound once again, while the South Korean won (KRW) remained along this threshold, casting uncertainty over both currencies for the upcoming week. Persisting in its trend over the past three weeks, the Japanese yen (JPY) remained below the lower bound but concluded the week with a notable increase. In contrast to the optimism of the previous week, the New Zealand Dollar (NZD) faced a significant decrease, ending below the lower threshold, yet showing a late-week increase that offers hope for the week ahead.