Volatility of Major Currencies Lowest Since 2007

JPMorgan Chase index shows volatility among G-7 currencies at 6.63 percent, vs. 27 percent in October 2008.

Volatility among major currencies fell to the lowest since 2007 as global central-bank balance sheets continue growing, driving more liquidity into financial markets, even as the economy worldwide recovers.

Australia’s dollar rose the most in almost two weeks against its U.S. counterpart before a report economists forecast will show inflation accelerated. The yuan touched a 14-month low as China’s largest manager of distressed debt said the country’s soured-loan ratio increased “significantly.” The dollar fell for the first time in eight days against a basket of peers before the Federal Reserve’s policy meeting next week.

The yuan plunged after China Huarong Asset Management Co. Chairman Lai Xiaomin said in comments from an April 15 meeting released today that China’s bad-loan ratio increased in the first quarter amid a “grim and complicated” business environment. China’s yuan fell 0.2 percent to 6.2375 per dollar after depreciating to 6.2390 earlier today, the weakest level since February 2013. The People’s Bank of China cut the currency’s reference rate by 0.03 percent to 6.1610 per dollar, the lowest level since Sept. 10.

 

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