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QU Economics Research Team

Pacific Exchange Rates Report for May 27 - 31

 

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.

 

From May 27th to the 31st, Pacific exchange rates fluctuated notably. Midweek, they saw a decrease followed by a steep rise, only to either fall again or increase at a slower pace. During this period, the Australian dollar (green) and the New Zealand dollar (blue) exhibited nearly identical behavior, both experiencing a significant decrease of approximately 0.5%. However, they managed to recover slightly by the week's end. The South Korean won (red) demonstrated higher volatility, climbing up by about 1.1% from its lowest point to the last day of the week. On the other hand, the Japanese yen (maroon) remained relatively stable, experiencing minor fluctuations with a slight decrease followed by an increase of less than half a percent before falling again, ultimately ending the week around its starting point.

 

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.

 

To wrap up the month of May, the currencies could be heading towards highs and lows that they have not seen in recent weeks. The New Zealand dollar (NZD) has been jaggedly decreasing over the last month, and this past week continued its path in a negative direction, almost at 1.62 where it was at a low point three months ago. The Australian dollar (AUD) has similar historical trends as the New Zealand dollar and is still trending downwards. The South Korean won (KRW) and the Japanese yen (JPY) have been following a more upward trend. For both of these currencies, this last week involved a small dip before rising up and falling again.

 

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