2 October 2012
The US dollar sharply fell in September, resulting in a surge of the Euro, the British pound, the Indian rupee and the Mexican peso. Our monthly statistical report displays a comprehensive view of currency values against the US dollar but also v. the euro, the British pound, the Indian and Pak rupees and the China's renminbi.
The US dollar last month fell against a large number of currencies, including in low-cost economies.
This is mostly due to announcement of a third wave of quantitative easing called QE3 and meaning the US Fed will produce additional quantities of money in order to support the economic activity.
The Mexican peso consecutively rose 3.43% against the greenback in September while the Indian rupee even surged 5.7%.
The Sri Lankan rupee rose 2.2%, although still losing 12% in first three quarters of 2012.
The euro initially rebounded before losing steam but was still 2.5% higher on October 1st, from a month earlier.
Considering the third quarter of the year, a series of currencies rose against the US dollar, including the INR (+4.61%), the Egyptian lira (+4.3%), the Mexican peso (+3.75%), or the Sri Lankan rupee (+3%).
The Honduran lempira fell 4.24% by contrast.
Although products are usually denominated in US$, a weaker American currency will result in lower margins in local currency terms, for exporters in low-cost countries.
The British pound surged 2.9% vs the dollar over the July-September period which should help importers in limiting prices at retail.