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 unexpected decline in the U.S. dollar had a dramatic affect on the value of many world currencies with three in particular worth noting.

The war-torn nation of Syria and four African nations -- the Congo, Liberia, Ethiopia and Nigeria -- suffered huge currency declines in 2017 accounting for a large portion of the world's currency instability even though a majority of the world's currencies actually gained in value against the U.S. dollar.

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World currencies were less volatile in 2017 as the Currency Volatility Index fell for the second straight year due to Syria and a drop in the U.S. dollar.

After three years of instability, global currency volatility settled back to a normal level in 2017 as the average volatility percentage fell to 2.78, a 9 percent drop from the 3.04 percent average the year before, according to the 2017 data from the Currency Volatility Index (CVI) of 122 currencies compiled by CreditPulse.

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War-torn Syria leads the way in currency volatility for the third quarter as the result of yet another devaluation as world currencies become slightly more erratic. 

Syria's currency, the pound, was the world's most volatile in the third quarter with a volatility rate of 21.3 percent followed by Liberia at 10.6 percent and Nigeria, Africa's largest country, at 6.7% as overall currency volatility edged upward slightly from the previous quarter.

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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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