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

September 1, 2025. Next update: September 17, 2025. Visit Search to look at past issues of World Currency Observer (brochure edition).

On developments regarding the principal news on exchange rates, consisting of updates with regard to United States tariffs: by the end of August 2025, American tariffs affecting every country and virtually every tradeable commodity in the world were in place, and all countries in the world are adjusting their policies to deal with the implications. The new developments in the last two weeks of August included the implementation, on August 29, of the United States de minimis rules, which impose tariffs on formerly-exempt small shipments of goods to the United States, by carriers consisting of postal and shipping services in other countries – postal and shipping services (carriers) in foreign countries are now obligated to collect United States duties (tariffs) on parcels before they accept them for shipment to the United States, and to remit the proceeds to United States customs (Customs and Border Protection), before the packages are permitted to cross the American border. Other developments in the United States during the last two weeks of August with impacts on exchange rates include: a move by the President to force from office a member of the Federal Reserve Board of Governors, seen as a move towards limiting the independence of the Fed, so that United States interest rates can be pushed lower; the discharge of a senior United States bureaucrat who delivered an unwelcome pessimistic update on the performance of the American economy (labour statistics), a move seen as undermining international confidence in the future reliability on the accuracy of data on United States economic activity; and confirmation that United States tariffs on India are rising from 25% to 50%, with the additional 25% linked to United States disapproval of the purchase by India of oil from Russia, and the suggestion that similar Russia-oil-linked punitive tariffs could be applied to other countries. A footnote is that assessment continues in the United States court system regarding United States tariff measures put in place since the beginning of the trade war in January 2025, with a just-released judgement which will push further assessments and judgements until October 2025 and beyond.

Reviewing exchange rate developments in August 2025: many currencies around the world were at a low against the United States dollar on August 1, after falling in the last week of July, due to pessimism and, especially, uncertainty about the precise level of United States tariff increases which would be announced in the first week of August. After the United States announcement of its new worldwide tariff structure , including the final versions that took effect on August 7 (and there were a number of surprises and revisions), many currencies around the world strengthened until August 13, weakened a little, but gained strength again in the last week of the month, partly on the news that (as mentioned above) the U.S. President was moving to change the composition of the United States Fed board of governors, with the intention of moving towards lower American interest rates via-a-vis every country in the world. (Prior to this news, throughout August worldwide short-term interest rates had continued their months-long downward drift.) This overall trajectory of currencies was noticeable (but more moderate than for other countries) in North America, where strength against the US$ was noticeable for the Mexico peso (up 1.2% over the entire month of August against the US dollar) and the Canada dollar (up 0.25% against the US. The Brazil real rose by a net 2% against the US$ in August (Brazil is among the countries working on comprehensive internal measures to deal with its high US tariffs), and the Colombia peso was up by 3.5%. The Argentina peso was down by a net 5% in August, and is now at around 1350 (weaker than the upper currency band value of 1400 per 1$US). Europe currencies, including the Euro, generally followed the trajectory of world currencies described above (i.e., weakness at the beginning of August against the US$, and then strength throughout the rest of the month), and generally finished the month up by around 1% against the US$, The Türkiye lira was down by 2.25% against the US$ in August 2025, and is down by 22.5% since this time last year (inflation of more than 30%). The Albania lek showed a net decline against the US$ in August, after moving up in July. Currencies of former USSR countries, including the Russia rouble, generally rose by a net 1% against the US$ in August 2025 - the Uzbekistan som was up by 2%. The Egypt pound and the Syria pound were both up by 2% against the US$ in August - the reciprocal tariff imposed by the United States on Syria is among the highest in the world. Africa currencies were generally up, between 1 and 2%, against the US$ over the entire month of August. Asia currencies generally showed small net movements upward against the US$ in August, but the Taiwan dollar was down by 2% (up by nearly 8% from its value before the January 2025 start of the worldwide trade war). The India rupee showed a small net decline against the US$ in August, but with a notable downward movement at end of the month on the above-mentioned news of a 50% US tariff. Gold (and other metals prices) were up in August 2025, while US$ oil prices declined. Coffee prices in US dollars were up by more than 30% in August.

(World Currency Observer will next be updated on September 17, 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.)