Welcome back to another monthly report on how things have progressed on the global currency markets. If you have been keeping an eye on your currency converter you may already have some of the answers we are going to give you, but let’s just have a brief recap on how things progressed during March.
The US dollar had a good time against four major currencies during March, with increases against every single one of them. For instance the dollar had a small increase of 0.0023 against the British pound, and it also added on around half a cent against the Euro.
Elsewhere it made a small gain against the Hong Kong dollar of 0.0017, but the best result was reserved for the Japanese yen. Here it managed to add on a total of 4.318 to the exchange rate.
But will it perform just as well during April? Let’s find out now.
An overview of the currency markets during April
The opening rate for April for the US dollar versus the British pound was 0.6601, but there was an immediate dip as the new month got underway. At the close of play on the 1st the exchange rate had gone down to 0.6570.
It stayed in this region for a while before dipping down to 0.6496 on the 12th, and it wouldn’t be until the 29th and a rate of 0.6555 that things started to look up again for the dollar.
There were a couple of dips again for the remainder of the month but eventually the dollar ended up on a closing rate for the month of 0.6536. This meant it had lost out on just over half a cent.
Moving onto the US dollar’s fight against the Euro now, we were starting here with a rate of 0.7418. Things looked hopeful on the 8th as the rate went up to 0.7521, but it soon dipped down again and between the 12th and the 18th the figures were in 0.73 territory.
The dollar managed to pull its socks up though and by the end of the month it had pulled its way back to 0.7510 – giving it an overall increase of around one Euro cent.
Our third stop is as always the Hong Kong dollar. Here the US dollar had finished on 7.7641 at the end of March, but as it turned out there wasn’t going to be much movement in either direction during April. The low point would be 7.7582 which occurred on the 12th of the month, while the best rate of all was 7.7676, which occurred much later on the 28th. The final rate was 7.7631, giving the US dollar a marginal loss of 0.001 overall.
Finally we have the Japanese yen to look at. How did the US dollar fare here? Last time we left it on an exchange rate of 93.426, so would it do any better this month?
It improved things to 94.087 on the 6th before dropping back again, and indeed the lowest point of the month came on the 19th when the rate dipped to 91.944. This seemed to shock the US dollar into action and it managed to regroup and finish the month on 94.487 as a result. This gave it an increase overall of 1.061.
Meanwhile, over in Europe…
We had an interesting situation between the British pound and the Euro last month. News of the General Election in the UK – due to be an uncertain affair – led to poor results for the pound, while Greece’s problems were giving the European single currency some woes as well.
The opening exchange rate for April was 1.1238, and this moved up to 1.1301 on the first day of trading in the new month. By the time we reached the 9th however that rate had gone up to 1.1467, so the pound was clearly having a better time of things than the Euro.
There were big and fast differences in store as well later on in the month. A rate of 1.1357 on the 19th changed to 1.1537 just three days later. But by the end of the month the Euro had fought back and led to a final rate of 1.1490.
This meant the British pound had come out on top this time around, with an increase of over two and a half Euro cents – not a bad improvement at all.
Elsewhere last month…
The US dollar and the Canadian dollar are always interesting to look at, and last time we left the US dollar claiming 1.0154 Canadian dollars. Could that be improved upon now?
The most notable moment initially came halfway through the month when the exchange rate dropped down to 0.9967. Two days later it was back up to 1.0023, but there was still some way to go before the US dollar could even regain the position it had started from.
It would drop back below parity another two times before the final rate of 1.0048 was announced on the last day of the month. This meant the Canadian dollar had come out on top this time.
At this stage in last month’s report we stated that the US dollar had experienced a mixed month. We could say much the same this time around too. It has had good results on some occasions but there has been no whitewash of great results all round.
With Europe experiencing problems and the UK’s pound going through a wobbly period thanks to the uncertainty of the Election, we can only guess at what the exchange rates may look like this time next month. Hopefully the US dollar will have another reasonably strong month rather than a weaker one, but we shall just have to wait and see what actually happens.
We can probably look forward to a stronger US dollar as far as the British pound is concerned though. If a hung parliament should result, this will be to the US dollar’s favor for sure. We’ll see you next month to see what happens next.