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

May 2, 2025. Next update: May 19, 2025. Visit Search to look at past issues of World Currency Observer (brochure edition).

At the beginning of April 2025, a wide number of currencies around the world weakened against the US dollar around the announcement, on April 5, 2025, of two tranches of United States tariffs on goods imported from other countries – on the Annex list of 57 jurisdictions (countries and the EU as a whole) varying and generally very high tariff rates, and 10% tariff rates for the remaining hundred-plus other countries that were not already subject to other tariffs (such as Canada, Mexico and Russia). Then, on April 9, the starting day for the tariffs, the higher tariffs on the Annex group, except for China, were revised back to 10% for three months, at which point a wide number of currencies around the world moved up against the US dollar, and many currencies then continued to strengthen for the rest of the month. Among these were the other North America currencies - after weakening and then strengthening after April 9, the Canada dollar showed a net gain of 4% on the month against the US dollar in April 2025, and the Mexico peso was up by 3%. While the spotlight has been on the response of the Annex group of countries subject to the now-deferred high tariffs, WCO is aware that, since April 2, there has been significant representation to the United States among the 10% group of countries, who, it is reported, indicate that they can see little reason why they are subject to the 10% reciprocal tariffs – which are still quite high - and want them moved to 0%. Also, on April 9, the United States imposed more tariffs on China, bringing them to 145% (with exemptions for a number of technology products) - China retaliated, bringing their net tariff rate on the United States to 125% (there are no solid indications that China-U.S. talks on this tariffs have occurred since then, so no indication that the “war” will end soon). Over the month, the China yuan (onshore) showed zero net movement against the US$ on the month, after moving down until April 9, and then moving up gradually over the rest of the month. Looking at other currencies around the world: the Dominican Republic peso was up by 6.75% in April against the US$, and the Costa Rica colón was down by 1.25% against the US dollar in April (mostly reversing the 1.5% upward movement it experienced in March.) There as a major change in the Argentina peso regime in April 2025 (see below). The Brazil peso showed a net movement up of 1.25% against the US$ in April (down until April 9 and then up), and down by 9.5% since this time last year. Currencies throughout Europe moved up very strongly after the April 9 U.S announcement of the three-month tariff deferral - among these, the Euro showed a net strengthening of 5% in April against the US$ (up 6% since this time last year). The Swiss franc was up 7% against the US$ in April 2025. The Russia rouble was up by 2.75% in April 2025, and up by 12.75% since this time last year against the US$. The Kazakhstan tenge was down against the US$ by 2.5% in April, the Ukraine hryvnia was steady, and all other former USSR currencies were stronger against the US$ in April 2025. In the Middle East, the Libya dinar was lowered by 13% against the US$ early in April by the central bank (which is said to have blamed the difficulties caused by incompatible policies of the two governments in Libya and low levels of oil export revenues deposited with the central bank). While Africa currencies were generally up against the US$ in April, by varying amounts (perhaps the strongest was the 8% appreciation of the Ghana cedi in April, generally considered to be linked to the continued strong performance of gold prices, which were up by 6% in April 2025, but also showing a little end-of-month weakness which was widely noted.) Currencies in the south of Africa showed weakness against the US$ in April - this included a 1.5% net fall over the whole of April in the US$ value of the South Africa rand, but, after the United States announced the deferral of tariffs mentioned above, the rand showed a large 6% increase in its US$ value over the rest of the month. With the exception of the China yuan (see above), Asia currencies, from the Pacific Rim to South Asia, were, almost all, up against the US$ in April 2025 - this was after strong showings in March 2025. For example, the Japan yen was up 4.75% in April (with a strong post-April 9 showing), and the India rupee was up by 1%. The Vietnam dong – Vietnam is widely considered to be a particular target of the United States tariffs, along with other Southeast Asia countries, as noted before - was down by 1.5% against the US$ in April, and down by 2.5% since this time last year. Among commodities, there was a sharp drop in oil prices at the end of April, which finished the month down 12%. With the exceptions of gold (see above) and silver, major metals US$ prices were down on the month, and the major agriculture product prices were up in April 2025.

In Argentina, the changes in the foreign exchange governance regime for the official Argentina peso, which took effect on April 15 2025, as part of Phase 3 of the Argentina economic program (President Milei), included: restrictions on the conversion of pesos into US dollars, at the official rate, were lifted; the official value of the peso was placed in a 1000 to 1400 pesos/1$US band (which is to weaken by 1% per month) with a commitment for the central bank to intervene only when the peso is on the verge of moving outside the band; all export revenues to be converted from US$ into pesos at the official peso rate, as opposed to the blended official/parallel conversion regime in place before. In the wake of these moves, the gap between the official value of the peso (dólar oficial) and parallel rate (dólar blue) has been reduced dramatically, although not completely eliminated – the midpoints for the dólar oficial/dólar blue are currently at 1163/1175, compared to 1095/1320 one month ago, which was two weeks before the announced currency reform. One feature of the announcement of the change in the regime was that, with strong financial support having been announced in March and April 2025 by the International Monetary Fund, the Inter American Development Bank, the World Bank and other multilateral institutions, and in view of the fact that substantial budget and regulatory adjustments have been implements in the recent past phases of economic reforms, there was no formal devaluation of the official value of the peso. The latest monthly inflation rate in Argentina is around 3.7%, which, looking forward, translates into 55% on an annual basis.

(World Currency Observer will next be updated on May 19, 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.)