Currency Volatility Report

Currency markets are highly sensitive to politics and economics.  Thus, currency volatility is a key sovereign risk indicator.  CreditPulse provides monthly reports for the world's most commonly traded currencies and semi-annual and annual reports for all world currencies.

Recent Articles

The volatility of New Zealand's currency is at its highest point since the second quarter of 2015, the year of the commodities crash.

New Zealand's dollar declined 6.72 percent against the U.S. dollar in the third quarter marking the first time since the commodities crash of 2015 that the currency is among the world leaders in quarterly volatility.

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South America replaces Africa as the region with the world's most volatile currencies as overall volatility rises in the third quarter. 

Global currency volatility rose in the third quarter of 2019 to the highest level in four years largely as the result of huge currency declines in Venezuela and Argentina, two of Latin America's most troubled economies, according to the latest data from the Currency Volatility Index (CVI) compiled quarterly by CreditPulse.

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Global economic headwinds and political instability create currency pressures as several currencies fall to all-time lows against the dollar.

The U.S. dollar has fallen 0.6 percent in the first six months of 2019, but that still hasn't prevented a number of currencies in Africa, Asia and the Caribbean from suffering record declines despite the fact that global currencies are less volatile than last year at this time.

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Overall volatilty declined slightly from the previous quarter but was spread more evenly around the world.  Two hotspots in the Caribbean. 

Global currency volatility increased in the second quarter of 2019 as 16 of the 125 currencies tracked in the Currency Volatility Index (CVI) had volatility rates of 2 percent or more compared with only 11 in the opening quarter.

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Argentina's currency falls to a new low against the U.S. dollar for the second time in two years as economic and political concerns deepen.

In March, 2013, Argentina's currency, the peso, had an official rate of 5.0973 to the dollar and a black market rate of 8.4431.  On Friday, the peso reached a value of 45.946 against the dollar, an all-time low for a nation with a history of currency woes.

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Venezuela's beleagured currency was easily the most volatile in a year that saw overall instabilty increase at the highest rate since 2015.  

Venezuela's currency was the most volatile in the world in 2018 as its complex, three-tiered currency system finally gave way to hyperinflation, a collapsing economy and the increased authoritarian rule of Nicholas Maduro.

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Global currencies were slightly less volatile in the third quarter but some troubling hot spots remain.

Global currency volatility cooled slightly in the third quarter of 2018 to an average of 1.48 percent, down from the 1.67 percent average from the previous quarter, according to the latest data from the Currency Volatility Index (CVI), a measurment of currency volatility compiled quarterly by CreditPulse.

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Turkey's already troubled currency, the lira, fell to its lowest level ever against the dollar after President Donald Trump threatened Turkey with more tariffs. 

The Turkish lira plunged to 6.93 to the U.S. dollar after briefly hitting 7.00 to the dollar on Monday for it's lowest value ever after Turkish President Recep Tayyip Erdogan and U.S. President Donald Trump engaged in a heated exchange over tariffs and economic policy.

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Latin America has replaced Africa as the region with the world's most volatile currencies as emerging markets worldwide come under greater stress.

Venezuela and Argentina, two of Latin America's most unstable and anti-market economies in recent years, are in trouble once again as their respective currencies were the most volatile in the world during the second quarter of 2018, according to the Currency Volatility Index (CVI).

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Eight years of economic and financial sanctions by the United States and the European Union have taken a tremendous toll on Iran's currency. 

In Februrary 2010, the hard-line Islamist government of Iran, one of the world's most oil-rich nations, decided to began the process of enriching uranium allegedly as fuel for a nuclear reactor, according to information from the Arms Control Association.

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