| Currency | Year-end 2023 | QoQ change (%) |
YoY change (%) |
Year-end 2022 |
|---|---|---|---|---|
| DXY Index | 101.33 | -4.56 | -2.11 | 103.52 |
| Euro (dollars per euro) | $1.10 | 4.41 | 3.12 | $1.07 |
| Japanese yen (yen per dollar) | ¥141.04 | -5.58 | -7.57 | ¥131.12 |
| British pound sterling (dollar per pound) | $1.27 | 4.36 | 5.36 | $1.21 |
| Chinese renminbi (yuan per dollar) | ¥7.10 | -2.71 | -2.92 | ¥6.90 |
Key Takeaways
- The U.S. Dollar Index (DXY) fell in the fourth quarter mainly due to market expectations that the Federal Reserve has reached the end of its rate hiking campaign. The euro strengthened late in the quarter, hovering near the $1.08 level. The yen also managed to recover some of the losses but remains well above ¥140 to the U.S. dollar.
- The Chinese yuan appreciated against the dollar late in the fourth quarter following months of continued concerns surrounding a still-lagging Chinese economic recovery.
Sources: Bloomberg and Wells Fargo Investment Institute, as of December 31, 2023. QOQ = quarter over quarter. YOY = year over year. The DXY Index measures the value of the U.S. dollar relative to major developed market currencies, notably the euro, the Japanese yen, and the British pound. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.