Saturday, January 21, 2012

Today's Major Market Move: Seychellois Rupee Weakens 14% Against the US Dollar Since October

With a population of only 86,500, the Seychelles do not typically come up when talking about global economic trends. However we still like to talk about the smaller countries since they can sometimes foreshadow economic difficulties in their larger brethren. The Seychellois Rupee has been under some stress since their peg was broken against the US Dollar back in September of last year. It has weakened almost 14% and has been the second worst  (behind Syria which is dealing with an uprising and economic sanctions) performing currency since Oct 1, 2011.

Click here to go to the live table.
Here's the line chart for the US Dollar / Seychellois Rupee cross going back to the beginning of 2011. One can see the peg that lasted until September, 2011 and since then it's been a steady climb higher.

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We haven't yet been able to identify any reasons for the weakness of the currency or for the breaking of the peg. Back in 2009 they started receiving assistance and guidance from the IMF. From a GDP growth perspective, the IMF involvement has been positive.

Click here to go to the live chart.

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