Inflation remains to be the consistent driver of exchange rates this month along with a few new factors.
Many countries that were maintaining steady interest rates have decided to increase them due to rising consumer prices.
This month’s changes resulted from specific economic niches ranging from rising prices in raw resources, political instability, and an increase in tourism. COVID-19 continues to impact the economic future of certain nations as travelling restrictions are set between countries.
Movement Continues in the Foreign Exchange Market.....
The COVID-19 Delta variant is widespread in several regions, particularly in Southeast Asia and various parts of Africa. The fear of a second economic lockdown negatively impacted many currencies as countries decide whether to impose further restrictions on the public.
Central Banks in many countries adjusted their policy to combat inflation as product prices around the world begin to increase. Countries with increased interest rates have seen an appreciation with their currency.
The reopening of economies and industry has helped many countries improve their economic outlook as trade resumes. Civil unrest is negatively impacting some countries that are experiencing conflict between the public and government
There has been movement in the foreign exchange markets due to the reopening of economies and political action within and between governments. Many countries are showing signs of stability and strength...
Movement Continues in the Foreign Exchange Market - This movement is caused by a rise in pandemic cases, hyper-inflation, recovery of oil prices, and more. Below are AIRINC’s summaries of the rate changes above 3.5% taken from our review last week.
2021 continues to be tumultuous for the global economy, as impacts of conditions throughout the year come due, and new issues emerge to impact markets. Below find our summaries of some of the month’s biggest changes in foreign exchange.