Currency Performance
The five most heavily traded currencies in the world are typically the U.S. dollar, British pound, euro, Japanese yen, and Swiss franc. Two statistical evaluations are presented below to track performance of these five currencies and five other major currencies. The time span for both calculations is January 19, 2010 through May 26, 2010.
Currency Value Change Versus
Swiss Franc
U.S. Dollar
Euro (EUR)
-4%
-16%
British Pound (GBP)
-2%
-13%
Swiss Franc (CHF)
–
-12%
Australian Dollar (AUD)
1%
-10%
Russian Rouble (RUB)
6%
-5%
Indian Rupee (INR)
8%
-3%
Canadian Dollar (CAD)
8%
-3%
Chinese Yuan (CNY)
11%
0%
American Dollar (USD)
11%
–
Japanese Yen (JPY)
11%
0%
The five currencies hit hardest this year are the euro, pound, Swiss franc, Australian dollar and ruble. The data shows that the strongest currencies during this period were the U.S. dollar, yuan and yen. Outside of the European Union, the United States, China and Japan also have the three largest economies as measured by GDP.
The euro has been battered by the financial crisis in Greece and the uncertainty surrounding the other countries tagged as “PIIGS.” This group, comprised of Portugal, Italy, Ireland, Greece and Spain, are all facing economic and debt problems that have driven investors away from the euro. The weak euro may actually help Greece because its exports will appear more attractive to countries outside the European Union.
The Bottom Line
While the U.S. certainly has its own debt problems, its currency and government-issued securities are considered relatively safe havens. Along with China and Japan, the American economy is still viewed as one of the strongest places to invest capital. How the U.S. deals with its growing debt will undoubtedly play a large role in the future value of its currency.
Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.