Pacific Exchange Rates Report for September 16th – 27th
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.
During the weeks of September 16th to September 27th, a general decline in exchange rates was observed. The Australian dollar (green) saw the most significant drop, falling by 2.2% against the United States dollar by the end of the second week. The New Zealand dollar (blue) followed a similar path, with a slightly smaller decline of 2.0%. After spending much of the two-week period in positive territory, the South Korean won (red) experienced a modest decline of 0.6% towards the week's end. In contrast, the Japanese yen (maroon) was the only currency to rise, gaining 2.3% during this 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.
As September comes to a close, all four observed exchange rates remain below the lower bounds of their three-month rolling averages. Both the Australian dollar and New Zealand dollar have steadily declined throughout the month, extending a downward trend that began in early August. The Japanese yen has also continued its fall, following a path set in motion since July. Meanwhile, the South Korean won experienced a sharp drop during one week in September, with no signs of recovery yet. Whether these exchange rates will rebound remains a key trend to monitor.
Additional Reading:
The attached article discusses the recent changes in U.S. personal consumption expenditures following the 50 basis point interest rate cut. Additionally, the Japanese yen has strengthened as Shigeru Ishiba prepares to take office as Japan’s prime minister next week.
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