As the situation stands at the moment, there are a handful of world currencies that are having a tough time on the currency markets. This has happened for different reasons, but clearly some are having an easier time of it than others.
Here are some examples from the market at the moment. Of course a single currency may not fall against every other currency in the world, but if it has a rough time it can also have an impact on future trading days.
South African rand – this doesn’t usually figure highly in many news stories because it isn’t one of the majors. But it is still worth a look, particularly as some have predicted a fall in its value through the last three months of this year. Perhaps 2010 will see a rise in its value to compensate?
US dollar – this has fallen against a number of currencies in recent times. The US Dollar Index tells us how the currency is performing against six other major currencies, and the results have not been good for months.
Russian ruble – this has been affected by the price of oil, which is capable of altering the exchange rates of many different currencies in certain situations. In this case the ruble came off worst in a tussle with the US dollar. Which just goes to show that even when a currency isn’t doing well generally, it can still hold off one or more currencies from other sources.
British pound – it is no big surprise to find this currency in the list. A weakening of the pound is hardly headline news now, as it has steadily dropped in value for well over a year. While it has on occasion pushed back and found a stronger footing, it has yet to achieve heights equal to those it has fallen from.
Euro – this might come as a surprise to some, but it relates to a specific currency pairing. In this case it is against the Japanese yen. It has gone on something of an up and down journey over recent days, but reports online have suggested that a downward trend is more likely in the weeks to come.
So there we have it – a snapshot of how things stand with some of the world’s currencies at the moment. We are all aware that things can change in an instant, but it will be worth keeping a closer eye on these five currencies in particular to see how things progress in the coming weeks.
One thing is clear however. The recession, while it may be abating in some ways, is still in force and this can affect which currencies investors want to put their money into. As time goes on what may be a good investment now may change to become anything but. This is what makes currency trading so fraught with risk.
So stay tuned to see what happens next. Will these give currencies continue to slide? Or will one or more of them have some respite to look forward to?