Trans-Atlantic Exchange Rate Report for April 15 – 19
By: Ryan Slattery, The Quinnipiac University Economics Research Team
Trans-Atlantic 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 April 15th to April 19th, the Canadian dollar (CAD) depreciated by 0.6% against the US dollar. The Swiss franc (CHF) fell 0.25% from its close the previous week, marking the smallest loss among the Trans-Atlantic currencies this week. The Euro (EUR) trended similarly to the Canadian dollar, but greater losses on Friday left it down by 0.77% for the week. The British pound (GBP) was the worst performer this week, losing 0.93% of its value by the end of the week.
Trans-Atlantic 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.
The Trans-Atlantic currencies are all at three-month lows in their value against the dollar. The Canadian dollar (CAD) has fallen over two standard deviations below its three-month average. The Swiss franc (CHF) is over one standard deviation below its three-month average. Similarly, the Euro (EUR) and British pound (GBP) are two standard deviations below their averages. The depreciation of each currency against the dollar this week has only continued this trend.
Further Reading
Discusses the US dollar’s role as a global reserve currency, and how US inflation and delayed rate cuts have driven a strengthening in the US dollar.
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