The US Dollar has seen a reversal of falls that occurred over many
months prior, and may have bottomed out, at least for now. The DXY
Dollar index, (an index that measures the dollar’s strength compared
to a basket of other currencies),rose from 91.14 to hit 94.05 before
dropping back to 93.06.Against the Thai baht, the US Dollar did rise
from 33.06 to 33.43, but strength in the local currency all but
cancelled out those gains for the exchange rate to return to 33.07.
The British pound had a good run up to 1.3667 against the USD
before seeing a pull back first to the 1.34 handle and then down to
1.3060 in short order. Yet the news of possible near term interest
rate rises in the UK quickly reversed the downward trend and the
Pound rebounded to 1.3305. Against the Thai Baht the British Pound
fell from 44.63 to 43.90. Expect the spread at currency exchange
booths to be wider than normal due to continued volatility
surrounding the Brexit process.
The USD/JPY cross rate briefly hit a high of 113.38 against the USD
before falling back to 111.81. This means that even though the USD
has strengthened of late, the Yen has strengthened even more. But
against the Thai baht it is a different story. The Thai Baht has also
powered higher against the USD and so the net effect is that the
Yen/Baht cross rate has been relatively static. The sideways
movement has seen a small range develop between 0.2968 and
0.2932, with 0.2950 being the mid point. This is still below the
important 0.30 level seen in prior months and it remains to be seen if
the Yen can retake this level.
The Russian ruble remained in a sideways range against the USD
moving between 57.3 and 58.3. The Russian currency saw 4 peaks at
the higher level and 4 troughs at the lower level and so remains
range bound. Against the Thai baht,the ruble remains largely
unmoved from a previous range of 0.575 to 0.584, and remains in a
sideways consolidation. It has held its gains from previous months
but whether or not the current move represents a topping out
remains to be seen.
The Euro fell from 1.1950 to 1.1733 against the USD before
rebounding to 1.1825, not long after posting highs of 1.21 just six
weeks ago. Yet even with that pull back the Euro appears to be
remaining in a longer-term uptrend and has held most of its gains
thus far from its lower levels earlier in the year. Against the Thai baht
the Euro moved down slightly from 39.67 to 39.08, mirroring some
of the strength of the Thai baht seen in other cross rates.