Summary Of World Currency Markets For September 2010

Friday October 8, 2010

If you have been keeping an eye on your currency converter over the last month, you may already know some of what has been going on with regard to the currency markets.

Which currencies have been doing well and which ones have been struggling? Let’s find out.

An overview of the currency markets during September

The US dollar grabbed a rate of 0.6504 against the British pound back in August. But as soon as the new month got underway the rate went down to 0.6492. It returned to a better rate a few days later but the best one of the month was 0.6525 on the 7th.

After that it was downhill all the way and the US dollar didn’t seem able to meet up with the pound and hold its own in the head to head. At the end of September the rate had dropped down to 0.6300.

The dollar did better against the Euro last time, finishing on 0.7886. But again the picture wasn’t good and the dollar dropped back to 0.7791 within a few short days. It got back into the 0.78 region for a while but there was not enough strength in the currency to stay there. In fact by the time the month was over the dollar had fallen all the way down to a depressing 0.7327.

Were there going to be bad results elsewhere as well? The US dollar finished on 7.7802 against the Hong Kong dollar in August, and once again the picture was not a pretty one. Just six days into the month the exchange rate had dropped to 7.7673. It would drop much further to 7.7574 by the 26th of the month, although it did then perk up a bit to finish on 7.7606.

Finally let’s see whether the US dollar could do anything against the Japanese yen. The opening rate here was 84.440 and it fell to a disappointing 83.299 at the mid month stage. It then pulled its socks up to 85.742 a few days later, before dropping the ball again to finish up on 83.294 as September drew to a close.

Meanwhile, over in Europe…

How did the British pound fare against the Euro during September? Was it an equally disappointing experience here too?

We started from 1.2124 and if we were hoping for a good result we didn’t get it. Things went steadily downhill almost straightaway, and the month long high of 1.2164 was reached just a week or so into September. Finally the pound ended up on a poor 1.1628.

Elsewhere last month…

The Canadian dollar finished on 0.9400 against the US dollar in August. But September would be a much better month as the Canadian dollar finished on 0.9698 by the end of it. The best rate mid month was an impressive 0.9770.

It certainly made up for the disappointing results it had seen against the US dollar in August, so it was good to have a positive result for once.

Looking forward

As always a look at the currency markets can be quite interesting. They can reveal many exciting results as well as ones that aren’t so good. We have seen this time around that the US dollar is struggling against many other currencies at the moment. It fell back against several major currencies including the British pound and the Japanese yen, so will this continue or will it be a mere blip in the pattern?

The British pound wasn’t doing well in every quarter though, even though it had done well against the US dollar. It fell badly against the Euro during the month, leaving it in a vulnerable position as a result. Will this be the first in a series of bad results or is there better news to come next time?

As always we shall be here to bring you the latest news and views on the currency markets. The major currencies are always fascinating to follow and while one currency may be down in the dumps one week, it can perk up the next. Perhaps October will bring more positive news for the US dollar? We can only wait, hope and see.