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

Dollar decline creates upward movment with many world currencies reducing volatility as African currencies still lead the way in declines.

World currencies were less volatile in the first quarter of 2017 with an average volatility of 1.15 percent, down from the 1.66 percent mark in the final quarter of last year largely due to a 2.74% decline in the U.S. dollar, according to the Currency Volatility Index (CVI).

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Devaluation sends Egypt's currency in a free fall against the U.S. dollar easily making the pound the most volatile currency in the fourth quarter of 2016.

The Egyptian pound was the world's most unstable currency in the fourth quarter of 2016 with a volatility percentage of 24% far outpacing the Turkish Lira as the second most volatile currency at 5.83%, according to the latest results of the Currency Volatility Index (CVI).

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Argentina's currency plunges against the U.S. dollar as the country's newly elected president, Mauricio Macro, lifts currency controls in a move to restore stability.

Since October 2011, Argentina's currency, the peso, has been in steady decline with the government at one point deploying dollar-sniffing dogs to combat what had become a thriving black market in U.S. dollars.  Those days may finally be over as Argentina's new president, Mauricio Macro, is allowing the peso to trade freely in a move meant to restore stability.

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Lower commodity prices combined with weak export growth in emerging markets continue to drive currency volatility.  Find out which currencies pose the greatest credit risk in the latest Currency Volatility Index.

Currency volatility continued its upward climb through the first seven months of 2015 as the volatility benchmark of the Currency Volatility Index (CVI) increased to 2.54% through July 31st from the 2.27% benchmark recorded through May 30th.

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Commodities-based economies continue to drive currency volatility fueled largely by a rise in the Russian ruble.  Find out which currencies are the most volatile in the May edition of the Currency Volatility Index. 

Currency markets were more volatile through May 30th as the volatility benchmark of the Currency Volatility Index jumped to 2.27 percent from the 1.59 percent figure as of February 28th.  The Currency Volatility Index, which is published by CreditPulse, tracks the volatility of 121 world currencies.

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Peter Schiff warns that the U.S. dollar could be in for a sharp fall as soon as currency traders realize that the Fed may not raise interest rates anytime soon.  "Like a horse with a bit in its mouth."

"Everybody is speculating," said fund manager Peter Schiff, the CEO of EuroPacific Capital in an eye-opening interview on Yahoo Finance on Thursday.  "The conventional narrative is that the Fed is going to be raising rates and the rest of the world is going to be easing," said Schiff.

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World currency markets have been ablaze in volatility so far in 2015 with most falling against a rising U.S. dollar.  Find out which currencies are the most volatile in the February edition of the Currency Volatility Index.

Market forces are the key to evaluating both sovereign and organizational credit risk.  One market force that is particularly sensitive to an array of credit risk factors is a nation's currency market.  Get the latest currency volatility figures for 120 world currencies in this CreditPulse exclusive.

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The dramatic drop in world oil prices was a major contributor to the instability of the world's most volatile currencies with two notable exceptions.  Get the full story and the complete Currency Volatility Index for 2014 in this CreditPulse currency risk exclusive.

The world's currencies were slightly more stable in 2014 with the volatility benchmark coming in at 2.81% standard deviation compared to the 2.91% margin from a year ago, according to volatility figures as measured against the U.S. dollar for 116 currencies tracked by CreditPulse.

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Economic sanctions proved their metal in 2013 as the currencies of Iran and Syria nose-dived against the U.S. dollar as the result of tremendous restrictions imposed by both the United States and the European Union, according to volatility data released by CreditPulse.

The rial, Iran's currency, started to fall in 2012 and continued its decline throughout 2013.  At the start of the year, the "official reference" rate was 12,271 rial to the U.S. dollar but at year's end the rate had declined to 24,812 to the dollar for a decrease of 102%.

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Currency devaluations, political unrest and global economic uncertainty were the key drivers for the world's most volatile currencies through the first half of 2012.  Brazil's real falls to new a three-year low.

In April, the Central Bank of Myanmar devalued its currency, the kyat, from a fixed rate of 6.4 kyat to the U.S. dollar to its black market exchange rate of around 800 Kyat to the U.S. Dollar for a six-month volatility rate of 48.36 percent, topping all world currencies in volatility.

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