Euro’s 2017 performance

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During 2017, the Euro appreciated against the major currencies, with the only exception of the Czech Koruna. Indeed, the Czech currency appreciated by 5.9% against its European counterpart (percentage variation from January 1st to December 31st, 2017) following the restrictive monetary policy by the central bank and the good economic performance of the country (GDP growth of 5%, unemployment rate of 3.8% and inflation of 2.4%).

Chart 2017 performance of Euro paired currencies

Among the losing currencies we find the Brazilian Real, which lost more than 13% during the year against the Euro due to the expansionary monetary policy by the central bank, which drove interest rates to their lowest level, with the aim of revitalising the economy.

The Argentinean Peso has suffered a strong depreciation as well: -27%. Main responsible were the weak fiscal policy and a record-high inflation (25%).

The US dollar weakened during the year; after the appreciation following Trump’s election, the dollar closed the year marking a -12.21% against the euro. The American currency lost due to news concerning the differential of economic growth. In truth, European GDP (2.6%) is now superior to the American one.

The Japanese Yen suffered losses mainly due to the feeble economic growth, together with low inflation and lack of shifts in monetary policy, and interest rates still in negative territories. The Swiss Franc as well depreciated consequently to an economic growth below expectations. Now, Helvetic GDP annual growth is 1.2%.

Concerning the Mexican Peso, political instability and protectionist politics adopted by USA have influenced currency weakness. In fact, it has lost around 7% of its initial value.

Ruble has decresed following the resolute expansionary monetary policy line by the central bank.

The Indian Rupee suffered an impairment since Modi’s foreign policy entered into a conflict with China and Pakistan.

Chinese Yuan has decreased towards Euro, confirming the multiannual trend that sees an increase in the amount of Chinese foreigner investments and, therefore, an increase in sales of Chinese currency in order to purchase foreign currency, despite monetary policies adopted to tone down currency’s fluctuations.

Periodic table of currencies against euro from 2012 to 2017

Moving to a multi-year perspective, in last 6 years, from 2012 to 2017, best currencies compared to Euro have been:

  • USD, that signed +7,7%;
  • Chinese Yuan, with +4,3%;
  • CHF, with +3,7%.

Vice versa, currency that have most weakened are:

  • Argentinean pesos, that has lost 411%;
  • Brazilian Real, with -52,7%;
  • Japanese Yen, with -35,6%.

 

 

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