Summary Of World Currency Markets For March 2010

Wednesday April 14, 2010

Welcome back to another month’s worth of data from the currency markets.  If you are constantly looking at the figures on your currency converter you may already be aware of how things have progressed during the last month.  But let’s go through things now to see which currencies came out on top – and which ones still have some work to do.

The US dollar did better during February as it finished on 0.6578 against the British pound, so we will be seeing very shortly whether it could improve on that or not.  The dollar also finished on a respectable 0.7369 against the Euro last time around, so perhaps it will achieve a similar result this month as well.

The Hong Kong dollar beat it down for the month with an exchange rate of 7.7624 in the bag at the close of play in February.  So we can see that while the US dollar had a good time in some cases, it didn’t spread right across the board.

But that was last time.  Now let’s see what happened during March.

An overview of the currency markets during March

The US dollar finished up with a rate of 0.6578 against the pound by the end of February, but by the end of the first day of the month we were up to 0.6703.  It might have been a good start but could we keep it up?

Things dipped back down to 0.6689 the following day and the next notable move was downwards towards the middle of the month, when it dipped to 0.6598.  It did manage to climb up as far as 0.6743 as the end of the month beckoned, but by the close of play the US dollar was left on 0.6601.  This was still slightly higher than we started off at though.

The US dollar started off with a rate of 0.7369 against the Euro, but this gave way to a lower rate of 0.7264 as the middle of the month came upon us.  Clearly this was not the strongest time for the US dollar.  It did manage to climb back up to 0.7320 on the 18th though, and things got better still a few days after this as the US dollar continued to make good ground.

The month closed with the US dollar claiming a rate of 0.7418 against the Euro, so once again it was a good time all in all.  Let’s hope next month pans out to be just as good.

As February came to an end the US dollar was claiming 7.7624 Hong Kong dollars.  But with the pattern of the above two currencies becoming apparent, could the same happen with the Hong Kong dollar now?

The first momentary dip came earlier than expected on the 8th, when the exchange rate fell to 7.7588.  It then climbed back up the following day before falling into a pattern of ups and downs that lasted a fair few days.

So while there was a significant dip in the middle of the month the pattern was not perhaps as pronounced as it had been against the British pound and the Euro.  And the US dollar finished on 7.7641 against the Hong Kong dollar as a result.

Our last stop for the month as always is the US dollar versus the Japanese yen.  Here the closing point last time was 89.108, but there was only one direction the US dollar was going in from now onwards – and that was up.

Certainly there was the odd blip here and there, but all in all, the prognosis was excellent.  And indeed the highest exchange rate of the month occurred on the final day, with a rate of 93.426 being recorded.  You can’t ask for much more than that, can you?

Meanwhile, over in Europe…

Let’s make our customary trip to Europe now to see how the British pound was faring against the European single currency.  Last month the pound finished on a woefully dismal 1.1201, so anything better than that would be good.

This rate dropped back to 1.1029 on the 1st of March, but although the first few days of the month were dreadful, things did start looking up after that.  There was the odd occasion where the rate went down to the 1.09 level, but soon we were able to identify a turning point where the rate went up to 1.1026.  This occurred on the 16th of the month.

It wasn’t all good news from then on, but the final rate of the month for the pound was a much better 1.1238, so at least it had made some progress.

Elsewhere last month…

How did the US dollar fare against the Canadian dollar?  With a starting rate of 1.0577 left over from February it was soon apparent that the Canadian dollar would be the stronger of the two this month.

The rate dropped down to 1.0355 on the 2nd of March, and the lowest point was reached on the 19th, when the exchange rate fell to 1.0087.  This was not how the US dollar wanted things to go, but it could do nothing to stop it.

It did manage to scramble back up to a rate of 1.0154 to close out the month, but this was a long way from the more impressive figure it had started off on.

Looking forward

It has been a mixed month all in all for the US dollar, with good results here and there but some rather disappointing ones elsewhere.  Perhaps as March gives way to April we shall have some better news to report on, but at least it hasn’t been dreadful.

It is certainly the case that the US dollar has had better months in the past against various other currencies.  But it could have been worse and perhaps that is what we need to keep our thoughts on as we look ahead to the next month.

So with that in mind, we’ll see you again next month.