Weekly Currency Transfer Roundup – January 8, 2024

About Author: Hi, I’m Quinn Askeland. In 2014, I started Transumo after experiencing expensive, slow, and frustrating international money transfers and payments through banks. Once I discovered how to manage my own international currencies much better, I became driven to help others improve their transfers and payments. Fortunately, today, there are many excellent options. See My Full Bio.

Welcome to this week’s currency roundup! The US Dollar has made a surprising comeback, gaining +1.04% against other major currencies. This boost is a change from last week’s -0.32% dip. On Friday, the Dollar even nudged a bit higher, closing at 102.435. What’s behind this Dollar boost? Well, on Friday, a key report showed that the service sector wasn’t as busy as expected, but job numbers were pretty upbeat – more people are earning more, and 216K new jobs were added. This good job news, combined with a slight drop in unemployment, gave the Dollar some extra strength.

The Dollar got another push on Thursday from fewer people filing for unemployment than anticipated and a solid increase in jobs reported by private companies in December. These positive signs in the job market, along with hints that the US Federal Reserve might not be too quick to cut interest rates, have really helped the Dollar.

So, what’s next? Everyone’s keeping an eye on the upcoming inflation numbers to see where the Dollar heads from here.

USD to EUR Weekly Overview

This week, the US Dollar to Euro (USD to EUR) exchange rate bounced back a bit, increasing by +0.87%. This is a change from the past three weeks, where it had been dropping. On Friday, the exchange rate closed slightly higher at 0.9138.

Here’s what happened: On Tuesday, the Euro got stronger because of some good business activity reports from Germany and the broader Eurozone. However, Germany’s inflation was lower than expected, which actually helped the US Dollar stay strong against the Euro.

On Friday, the US Dollar hit a 17-day high against the Euro, reaching 0.9189. This jump was thanks to strong US job data. But the Euro is still feeling some pressure because overall inflation in Europe is declining.

When the USD strengthens against the EUR, as it did this week, it means that your US Dollars can buy more Euros than before. This could be a favorable time for those in the US looking to send money to Europe or for anyone planning to exchange USD for EUR, as you might get more value for your money. However, if you’re in Europe and planning to convert Euros to US Dollars, you might find that your Euros don’t go as far as they would have when the Dollar was weaker.

USD to GBP Weekly Overview

This week, the US Dollar to British Pound (USD to GBP) exchange rate saw a slight increase of +0.09%. This comes after three weeks of the Dollar losing value against the Pound. However, on Friday, the trend shifted again, with the exchange rate dropping a bit to close at 0.78608, marking a -0.29% fall.

Here’s a quick rundown of what happened this week in the UK: On Tuesday, retail prices stayed pretty steady, and the final Manufacturing numbers were almost exactly what people expected, painting a stable picture of the UK’s economy. On Thursday, the British Pound got a boost thanks to better-than-expected numbers in the service sector. And on Friday, the construction sector also reported slightly better figures than anticipated.

Even though the US Dollar was generally strong this week, these positive economic reports from the UK kept the gains in the USD to GBP exchange rate in check. If you’re in the UK and planning to send money to the US or exchange British Pounds for US Dollars, a slightly stronger Dollar means your Pounds might not get you as many Dollars as they would have when the Dollar was weaker.

USD to CAD Weekly Overview

This week, the US Dollar to Canadian Dollar (USD to CAD) exchange rate saw an upswing, increasing by +0.84%. This marks a change from the previous three weeks of declines. By the end of the week, specifically on Friday, the rate hit a high of 1.33991 and closed slightly up at 1.33551.

Here’s what happened in Canada this week: The job market didn’t add as many jobs as expected, but people’s wages went up. The unemployment rate stayed steady at 5.8%, which was actually better than the 5.9% people were predicting. Because of these mixed signals from the Canadian economy, the Canadian Dollar (often called the ‘Loonie’) had a bit of a tough week against a strengthening US Dollar.

However, there was a bit of a boost for the Canadian Dollar thanks to rising oil prices, stirred up by some geopolitical tensions and issues in key oil-producing regions. This helped prevent the US Dollar from gaining too much against the Canadian Dollar.

If you’re looking to exchange US Dollars for Canadian Dollars, the slight rise in the USD to CAD rate means your US Dollars could get you more Canadian Dollars than before. However, the ongoing changes in oil prices and economic data might affect the rate further, so it’s a good idea to stay updated on these trends, especially if you’re planning a currency exchange or transfer.

USD to AUD Weekly Overview

This week, the US Dollar to Australian Dollar (USD to AUD) exchange rate saw a bit of an increase, going up by +0.44%. The Aussie Dollar actually reached its highest level in 17 days on Friday at 1.5054. But the gains didn’t last long, as the rate dipped by -0.12% to close at 1.4888 by the end of the day.

What’s been happening? Well, the US Dollar got stronger because of some really good job numbers in the US. At the same time, the Australian Dollar found support from some positive news in China. China’s factory activity grew faster than expected in December, which is good news for Australia because they do a lot of business with China. The better these sectors do in China, the better it can be for the Australian Dollar.

In Australia itself, there wasn’t much big news to shake things up this week. So, the movement in the USD to AUD rate was mostly driven by what’s happening in the US.

If you’re looking to exchange US Dollars for Australian Dollars, the slight rise in the USD to AUD rate means you might get a bit more Aussie Dollars for your US Dollars. However, since these rates can be influenced by a variety of factors, keeping an eye on the latest developments is key, especially if you’re planning a currency exchange or transfer involving these currencies.

USD to INR Weekly Overview

This week, the US Dollar to Indian Rupee (USD to INR) exchange rate took a slight dip of -0.11%, after enjoying gains in the past two weeks. The INR gained momentum, closing at 83.0750 on Friday.

India’s economy in 2023 turned out to be a pleasant surprise, growing by a robust 7.3%, according to the National Statistical Office. This growth exceeded earlier predictions, including those by former RBI Governor Raghuram Rajan, who initially estimated a 5% growth.

Rajan later pointed out three key reasons for India’s impressive performance: global economies didn’t slow down as much as feared, China’s reduced demand for commodities like oil (which helped India as a major energy importer), and significant government investment in infrastructure. This economic strength led to the Indian Rupee holding its own against a strong US Dollar.

If you’re in the UK and looking to send money to India or exchange US dollars for Indian Rupees, the stronger Rupee means your Dollar might get you slightly fewer Rupees than before. It’s worth keeping an eye on the latest trends and economic indicators, especially if you plan to make a currency exchange or transfer soon.

USD to SGD Weekly Overview

The US Dollar to Singapore Dollar (USD to SGD) exchange rate, after three weeks of decline, has picked up this week, rising by +0.76%. The Singapore Dollar hit an 18-day high before closing the week with a modest +0.02% gain.

The Singapore Dollar has been outshining other Asian currencies for the past two years. Whether it can clinch a hat-trick of wins in 2024 largely depends on the Monetary Authority of Singapore’s (MAS) next steps. The currency appreciated by 1.5% in 2023, thanks to the MAS’s firm stance on keeping its value up to combat inflation. Economists are watching closely to see if MAS continues this approach or even tightens it further if inflation persists. The anticipation of what MAS will do next has been a key factor in the Singapore Dollar’s performance, making it a currency to watch in the coming year.

For those in the UK considering sending money to Singapore or exchanging Pounds for Singapore Dollars, the strengthening of the SGD suggests that your Pounds might not stretch as far as they used to. As the situation evolves, staying informed about the MAS’s monetary policy and its impact on currency rates will be crucial for making smart financial decisions.

Conclusion

This week in the currency market, the US Dollar showed a surprising comeback, influenced by positive job data. The Euro and Pound Sterling fluctuate based on local economic updates, with the Euro struggling against declining inflation and the Pound getting a boost from a robust service sector.
In Canada, the Loonie saw mixed results due to oil price variations and domestic economic data, slightly lifting the USD to CAD rate. The Australian Dollar’s changes were driven by developments in the US and China, affecting the USD to AUD rate. Meanwhile, the Indian Rupee remained robust against the Dollar, thanks to India’s strong economic growth, and the Singapore Dollar’s performance hinged on the Monetary Authority of Singapore’s policy decisions.
For those involved in currency transfers or exchanges, keeping an eye on these global economic trends is crucial for making informed decisions.

So, stay alert and enjoy the financial dance! Happy transferring!