Headline for .     Since the beginning of 2018, despite the Covid-19 pandemic, currencies around the world are generally down against the United States dollar.     
World Currency Observer
World Currency Observer

Exchange Rates: one year high and low

January 3, 2025 (see January 20 update below). Next update: February 1, 2025. Visit Search to look at past issues of World Currency Observer (brochure edition).

Currencies around the world were generally down against the US$ in December 2024, with significant declines (by at least 5%, and often more) for most currencies against the US dollar over the whole of 2024. The exceptions, the currencies that actually got stronger against the US dollar from the start to the finish of 2024 (and in almost all cases it was “strengthening” by a very small net amount, not much different than zero), are a very mixed group, but many of them benefited from increased tourism (and not just from Americans), while others in this group were impacted by items such as foreign loan packages and the exploitation of recent oil and gas and other resource findings. A major factor was, despite falling interest rates, a widening gap between interest rates in the United States and other countries and currency zones (such as the Euro zone).

Looking at currencies around the world in the last month of 2024: the Mexico peso was down by 2% against the US$ in Dec 2024, and is down by 23% over the year 2024. The Canada dollar fell by 3% in December, and is down by 9% over 2024 against the US$. The Jamaica dollar rose by 1.5% against the US$ in December 2024 (down 1% over the whole of 2024). The Costa Rica colón is up by 2.5% against the US$ over 2024 (in December the colón rose and then fell back, with a net strengthening of 0.5% against the US$), and the Dominican Republic peso is down by nearly 5% over 2024 (the Dominican Republic shares a long border with Haiti). The Suriname dollar was up against the US$ by 4.75 over the whole of 2024. Other South American currencies were down against the US$ over 2024, such as the Brazil real by 28% (down by 3.5% in the month of December). Also, the Chile peso was down by 12% over 2024, the Colombia peso down by 15.5%, the Paraguay guarani down by 7.5%, and the Uruguay peso down by 12.2% over 2024, with all of these currencies down by 2% or more against the US$ in the month of December. European currencies, including the Euro and the Swiss franc, were generally down by 6% or more against the US$ over the whole of 2024, with the major exception being the United Kingdom pound, which fell by 1.5% over the whole of 2024. The Norway krone was down by 12% over 2024 against the US$. Over the whole of 2024, the Czechia koruna was down by 13% against the US$ (down by 7% against the Euro), the Hungary forint was down by 14.5% against the US$ (down 8% against the Euro), and the Türkiye lira was down by 19.5% against the US$ (down 13% against the Euro). The Russia rouble, after a 17% decline against the US$ in November 2024, was up by 8% in December, and was down by 15% over the whole of 2024 - also down by 15% over 2024 was the Kazakhstan tenge, which was down by 4% in December. The Georgia lari and the Tajikistan somoni were both down around 2.5% against the US$ in December 2024. The Egypt pound was down by 2.5% against the US$ in December, and down by 65% over the whole of 20245. The Nigeria naira was up by 8.25% against the US$ in December, and is down by 75% over the whole of 2024 (it is widely noted that the weakness of the naira has contributed enormously to strong inflation of food prices in Nigeria over the whole of 2024). After no net change in December 2024, the Kenya shilling was up by 17% against the US$ over the whole of 2024. The Tanzania shilling was up by 9.5% against the UD$ in the month of December 2024, leaving it up by 5% over the whole of 2024. The South Africa rand was down by 4.5% against the US$ in December, and up by 3.5% over the whole of 2024. The Australia dollar was down by 5% against the US$ in December and down by 10% over the whole of 2024 - the New Zealand dollar was down by 13% over the whole of 2024, after a 5.5% net decline in December. The South Korea won fell by 5.5% in December against the US%, and was down by 14% over 2024 - the Japan yen is down by 12% in 2024 against the US$ after a 5% net decline in December. The China yuan was down by 3% against the US$ over 2024. The Malaysian ringitt and the Sri Lanka rupee gained strength against the US$ over the whole of 2024. The Afghanistan afghani was down by 4.5% against the US$ in December, resulting in a 1.5% decline on the year.There was a slight upward movement over the year against the US$ by the Pakistan rupee (also by the Thai baht). There were reductions in the US$ prices of a wide variety of commodities in December 2024, but these were usually overwhelmed by the large price increases over the whole of 2024 - commodity prices which have, however, fallen over 2024 include oil, cotton, rice, maize and wheat.

January 20, 2025 update

The WCO mid-month update scheduled for today (January 20) happens to fall on the day when a new president is installed (inaugurated) in the United States, and there is little doubt that those around the world who follow exchange rates are generally uncertain, as the new president (Trump) has repeatedly promised immediate and very strong measures on important influences such as tariffs, immigration and energy policy, not to mention actions that will affect wars around the world. In addition, the outgoing president (Biden) has also been implementing changes over the last two-three weeks (including new sanctions on Russia oil and gas, with implications for the rouble, although it should be noted that the rouble has strengthened strongly against the US$ so far in January 2025), and working to ensure, to the extent possible, that previously implemented measures by Biden remain in effect under the new president. What will be done, and the timing of announced policy changes, are uncertain to most observers, even to those very close to the decisions. That being said, many of the fundamental elements that influence exchange rates take time to change, and will continue as before for the immediate future – overall economic growth, interest rates (outside the purview of the president), inflation and the overall balance of payments. But if a trade war results from strong Unted States tariffs, this would be a development which would be as strong as these other influences. Among other items directly related to currencies are a suggestion (made in November 2024) that the new president may impose strong tariffs on the BRICS countries if they move on the creation of a rival international currency which would challenge the international trade and finance role of the United States dollar. Also, after a year of general (but not universal) weakness of currencies around the world in 2024 against the US dollar, there was more weakness against the US dollar in the first two weeks of January 2025, but among the exceptions have been strength in the Japan yen, the South Korea won, the South Africa rand and the Brazil real.

(World Currency Observer will next be updated on February 1, 2025. Visit Search to look at past issues of World Currency Observer (brochure edition). For permission-to-quote enquiries, e-mail World Currency Observer at WCO@briargreen.com.)