Summary Of World Currency Markets For September 2009

Wednesday October 7, 2009

Welcome back to our monthly look at the global currency markets.  During August we noticed that there were plenty of small changes to pay attention to.  But would this continue into September or would there be bigger changes in store for the likes of the US dollar and other major currencies as well? The dollar put in a reasonably good performance against the British pound during August, with an increase of just over a cent in all.  But the US dollar didn’t do so well when it came to the Euro.  Its performance there indicated an overall loss for the month of 0.0067.  What more (or less) could we expect during September?  We’ll find out shortly. 

A miniscule addition to the exchange rate against the Hong Kong dollar was recorded too during August, but there was a bigger move in the opposite direction against the Japanese yen.  It recorded a drop of 2.461 over there. 


So what lies in store in our report this month?  Will it be a month of good news for the US dollar, or did it struggle to maintain a strong footing?  We’ll find out very soon as we take a closer look at the figures that popped up on the currency converter throughout the month.


And as per usual we’ll be following this up with a brief look at Europe before spotting particularly interesting exchange rates in place elsewhere.  So let’s see just how exciting September really was, shall we? 

An overview of the currency markets during September 

The efforts put in by the US dollar 

As we mentioned previously, the US dollar managed to up the ante slightly against the British pound during August.  But could it capitalize on that and make September another month to remember? 

Our starting point this time was 0.6175, achieved by the US dollar on the last day of August.  On the 1st September the closing rate was 0.6158, so in actual fact it was the British pound that got first blood.

It carried on dropping steadily throughout the rest of that first week too, before reclaiming some ground and jumping from 0.6101 on Thursday to 0.6114 on Friday evening.  But what did the rest of the month hold in store?  There was indeed a long way to go yet.

Immediately on starting the second week the US dollar lost more ground and slipped back to 0.6095.  That steady pattern of small losses continued, and while it managed to claw back a little something at the midweek point, it wasn’t enough to prevent the pound from coming back and leaving the dollar on 0.5988 by the close of play on Friday.

So far it was clearly the British pound that was in control.  But given the performance between these two in recent months, it could still be conceivable that the US dollar would jump ahead and regain some strength by the time the month was out. 

The following week was indeed a better one for the US dollar.  As soon as Monday got underway it managed to regain the 0.60 territory it had seen before.  It finished the day on 0.6036, and it didn’t slip back below it for the rest of the week either.  In fact it reached new heights by achieving a total of 0.6122 against the British pound by the time the markets closed on Friday evening.

So now things were starting to get interesting.  Was the tide turning against the British pound?  Would the US dollar begin to find its strength so it could end the month on a higher note than it had started it?  So far we are up to the 18th September so there was still a long way to go – but it did give us plenty to think about.

On the 21st the dollar saw another leap up to 0.6185 before slipping back again to 0.6121 the next day.  And that was followed by 0.6084 on the 23rd, so was this the pound’s way of getting back in the driving seat once more?

If it was trying to do just that it was doing it too soon, because the US dollar apparently had plenty more in reserve to battle back with.  The 24th of the month saw a refreshed and renewed exchange rate of 0.6166.  And by the time the week was out we were staring at an exchange rate that hadn’t seemed possible just a few days before.  That was 0.6262 – quite a jump up from where we had started the week.

So we were down to the last few days of the month now, and on the following Monday the US dollar pushed forward once more to claim 0.6297.  It lost a small amount of this the next day, but in the end it finished the month on 0.6209.  That meant that overall the US dollar had won the month, but only by the small margin of 0.0034.  Another small change then, all in all.

A small loss against the Euro of a little over half a cent had occurred during August, giving us the starting point this time of 0.7006.  It will be interesting to see which currency comes out on top this time around.

Well it was the Euro that got the first successful result in, as the US dollar finished slightly down on the 1st September on 0.6986.  It bounced back the following day though to get back to 0.7032.  Then things dropped back to 0.6975 the day after, before finishing what was clearly an up and down week on 0.7011.  If the whole month continued like this, it would certainly be an interesting one.

The dollar dropped back to 0.6978 on the 7th, and the 0.70 range would not be achieved again for the whole of the rest of the month.  That was bad news for the dollar as it means we know it will be onto a loss over the month as a whole.  The question now is by how much?

It finished the week in question on a lowly 0.6852, but there was worse news in store the following week when it reached a low point of 0.6797.  It managed to drag itself back up against the Euro somewhat by claiming 0.6800, but clearly there was still some work to do in order to climb back near the 0.70 mark.

The lowest point for the rest of the month of September was 0.6764, which occurred on the 23rd.  But the best the US dollar could do for the remainder of the month was 0.6829 on the final day of trading.

All in all that meant the US dollar had lost out to the Euro over the month as a whole.  It had lost a total of 0.0177 – giving it some work to do during October if it wants to regain some authority against the European single currency.

Let’s move on now to our next currency – the Hong Kong dollar.  The US dollar added a tiny amount on the previous month to finish on 7.7508, but could it improve this time?

Well the lowest point of the month was reached on the 15th September, when the US dollar claimed 7.7499 Hong Kong dollars.  But given that its best efforts were achieved very early on with an exchange rate of 7.7511 on the 2nd of the month, there was clearly not going to be a huge success here for the US dollar.

And in fact the final rate of the month was 7.7501, which meant the US dollar had lost out here too – to the tune of 0.0007 in all.  Better luck next time perhaps.

Finally it is the turn of the Japanese yen to go up against the US dollar.  Last time we finished on an exchange rate of 93.259, after losing a total of 2.461.  Could the US dollar renew its efforts this time around?

Unfortunately the answer was no.  The best rate of the month was the one it achieved on day one, which was 93.097. And while things went up and down a little during the course of the thirty days of September, the lowest rate – perhaps predictably – was on the final day of the month, at 89.510.  This meant the US dollar had lost a total of 3.749 – more than the month before.

So it wasn’t the best month for the US dollar.

Meanwhile, over in Europe…


It’s time now to see how things progressed in Europe during September.  The Euro finished on 0.8813 against the British pound the previous month, adding two and a half cents on in the process.

But could it repeat the feat during September?  Things didn’t look good to start with as it slipped back to 0.8751 on the second day of the month.  But even though the high point was a dizzying 0.9226, it still managed to clock up an exchange rate of 0.9093 by the close of the month.  That equated to an increase of 0.028 in total.  Not a bad performance from the Euro.

Elsewhere last month…  

This is the stage where we take a look at what else went on during the month of September. 

Let’s start with the Euro versus the Japanese yen.  This was something verging on an up and down affair, with a closing rate of 133.260 on the 1st, and then heading up to 134.130 on the 9th.

Things were up and down throughout the next week or so as well, before settling on 135.460 on the 21st.  That was the first day in a fresh week, and it was a week that saw a steady downhill slide as well.  The final rate that week was a lowly 132.590, which made us wonder whether the Euro was struggling to maintain any kind of strength at all here.

Indeed that seemed to be the case, and it fell as low as 130.910 on the 29th before upping the stakes slightly to finish the month on 131.070.  This still made the Euro lose out on 2.19 since the first day of the month.

Australia versus New Zealand saw the New Zealanders come out on top overall as well, as their two dollars went head to head during September.  The Aussie dollar closed on 1.2256 on the 1st, before moving up to 1.2317 the next day and staying in the 1.23 territory until the 11th.  That was when the rate went down to 1.2219 to finish the week.

We soon found ourselves in 1.20 territory as well, although the Aussie dollar managed to pull back to end the month on 1.2224 overall.  That meant just a small amount was lost overall – and considering the various ups and downs that had occurred throughout the month, the losses could have been significantly more.

And finally the Japanese yen powered its way up from 0.01176 against the Canadian dollar on the 1st, finishing the month on 0.01198.  There were higher points in between but this was the best it could manage overall.

Looking forward

So it was an interesting month all in all.  The US dollar has been looking weaker against many other currencies, and we’re hoping for a stronger stance in the weeks and months to come.  Anything could happen but we will be here as always to report back on all the most notable stories from the currency markets. It’s fascinating too to see that the Euro is not always as strong as some make it out to be.  It all depends on which other currency it goes head to head with – and in September the Japanese yen proved to be the stronger of the two. But perhaps the one to really keep an eye on is the coupling of the US dollar and the British pound.  This has been fascinating to watch for the last year or so, as the pound has steadily lost value.  But how much longer can this be the case?  It has bounced back somewhat already – but when will it do so to a greater degree? We’ll be right here to tell you when it happens – and we look forward to seeing you again next month, as we review the events of October.  We’ll see you then.



  1. can you please provide me with a performance graph on the following currencies
    US doller
    Swiss franc
    year to date please

    thank you and look forward to your responce

    — jai patel · Nov 2, 12:30 PM · #