However, the Russian currency is still far from those levels to about where it was trading before the start of these dramatic events. Especially for “the Russian newspaper” Dmitry Babin, an expert on the stock market, “BCS”, commented on the dynamics of changes in 36 currencies against the U.S. dollar.
recently, the ruble rating of 36 major global currencies change their rate to the US dollar since the beginning of the year was on the 32nd place with losses of 13 per cent, – says the expert. But now, the Russian currency recovered rapidly and has risen up one place in the ranking published by the Agency Reuters. And there is a possibility that the ruble will win back several positions.
the Best dynamics since the beginning of the year showed the US dollar index which increased by 3 percent. In the acute phase of market instability, which came on the second half of March, the dollar index was even renewed a three-year high, adding from the beginning, almost 7 percent. But then passed the position in the correction.
Leading positions in the U.S. currency due to the fact that in times of crisis it is used by global investors as one of the main defensive assets. Also, the demand for dollars is supported by the difference in rates between the United States and other developed countries, many of which reliable bonds have a zero or negative rate of return. This contributes to the inflow of funds into dollar-denominated assets.
as for the dynamics of change of other currencies against the US dollar, today the first place is the Egyptian pound. He even became the leader in the change rate to the dollar this year.
the Main reason for such a result made active use of the foreign exchange reserves to prevent a strong devaluation of the national currency due to the collapse of the world markets caused by the pandemic. The result is foreign currency reserves of Egypt in March, suffered a record loss. But there was no way. Closures due to coronavirus struck by the tourism sector of the country, which greatly affects the income of the public and private sectors.
However, thanks to emergency monetary measures and assistance from the IMF, Egypt has successfully managed to cope with the acute phase of the crisis and the national currency has even increased since the beginning of the year to 1.5 percent to the U.S. dollar.
the Second place among 36 major currencies is the Japanese yen. Along with the dollar and it also acts as a protective asset for global investors. Therefore, in the period of market instability, the Japanese yen looks stronger than other currencies.
in addition, Japan has not introduced tough measures against pandemic as a national characteristic is the high level of personal hygiene. Therefore, the new rules are executed “automatically”. Thanks etWMD the spread of coronavirus in the country was small, and the economic damage from this problem is relatively moderate. In the result, the Japanese yen has added about one percent to the U.S. dollar.
the three entered and Hong Kong dollar (the official currency of the Special administrative region of Hong Kong, China). He added the U.S. dollar to 0.5 percent.
the Euro has settled in 10th place. With the beginning of the year he lost to the US dollar 2.1 percent.
the Outsider at the moment is the Brazilian real depreciating since the beginning of the year almost 30 percent against the US dollar. As a result, the currency has updated its historical minimum. That usually is a negative positive signal not only for emerging markets, but in General for global Finance and economic system.
Such negative dynamics of the Brazilian currency due to several factors. This pandemic caused the collapse of commodity markets, situation which plays an important role in government revenues, heavily dependent on exports. In addition, in Brazil in recent weeks has seen a rapid spread of the coronavirus. Such a severe combination of negative factors is compounded by internal political strife and scandals, not allowing the Brazilian real to generate a sustainable recovery.
Thus, from the beginning of the year leading the dynamics shown by the safe haven currencies of developed countries. As for em currencies (which is true of the ruble), then the key to their relative stability began active operations national Central banks and the lack of a serious political contradictions.
