Pacific Exchange Rates Report for March 17 – March 28

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 March 17th and March 28th, all four tracked pacific exchange rates increased in value relative to the United States dollar. The most significant was the South Korean won (red), which increased by 1.4%. The Japanese yen (maroon) and New Zealand dollar also had substantial increases in value, each rising 1.2%. The Australian dollar (green) saw the smallest increase in value relative to the United States dollar at 0.7% over the reported two week period.

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 April, there are several pacific exchange rate trends worth noting. First, the Australian dollar and New Zealand dollar appear to have been on a similar trajectory since January, with both currencies losing value relative to the United States dollar as April approaches. The South Korean won has had a volatile month but is currently stronger now relative to the United States dollar than it was when March began. The Japanese yen spent the majority of March getting stronger relative to the United States dollar, after hitting a three month low in value in early March. The yen will be a currency to watch for in April given its recent volatility.

Additional Reading

Japanese Yen Jumps to Over One-Week High Against Weaker USD; Seems Poised to Climb Further

The Japanese yen has strengthened against the United States dollar in recent weeks, hitting a one-week high amid uncertainty in the U.S. around President Donald Trump’s tariffs set to release on April 2nd. These geopolitical risks continue to weigh on investors who see the Japanese yen as a potential safe haven. The Bank of Japan is also expected to continue raising rates, further driving investors in the Japanese yen.