Here's Mexico (graph is pesos per dollar), where the $ has appreciated around 30% in three months:
Here's Brazil, where the $ has appreciated around 40% in the last three months:
And finally Chile, where the $ has appreciated around 25% in the last three months:
Update: The situation is the same in Colombia where the $ has appreciated around 30% in the last three months (thanks to commenter marecha for suggesting this case).
5 comments:
Wowee! Those charts are really dramatic... like most charts that don't show Zero anywhere. Change the scale -- change the drama.
25%, 30% or 40% depreciation *IS* dramatic. That's why I put the percentages in the text: to give perspective to the graphs. Not sure what your complaint could be, no massaging or fake drama here.
I didn't mean to imply any nefarious motives by Angus. It was Yahoo (I guess).
Just for grins, I scaled up the first image to include a zero point and then squished it back to the same size as the original. It is still impressive, but now it's also meaningful.
My (rough) version is here.
My wife is originally from Colombia and my mother-in-law's US Dollar bank accounts had been getting hammered due to the Peso's appreciation. About a year ago, she couldn't take it any more and sold her Dollars and bought Pesos. Now she is getting hammered again (assuming she wants to buy Dollars.)
She called me to ask why the Dollar was getting so strong. I told her that previously it looked like the US had a lot of economic problems from which the rest of the world (including emerging markets) seemed to be immune. However, now that the whole world is experiencing similar difficulties, the US looks stronger (in relative terms). I also said that the US was moving very quickly to try to remedy some of the immediate problems, a short-term positive.
Was my explanation correct?
Sounds like a pretty accurate interpretation to me, Marecha.
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