Currency Update

The Federal Reserve publishes a trade weighted index of the value of the US dollar against a basket of the currencies of our major trading partners on a daily and monthly basis. This is referred to as the Broad Index.

There is a close relationship between the value of the US dollar and the national current account and of net steel

Steel Market Update has noticed that the Broad Index does not necessarily reflect the currency fluctuations of the major steel trading nations. Therefore we have created our own report showing the current value of the currencies of individual steel trading nations and how those values have changed over seven days, three months and twelve months. Currency fluctuations between nations drastically affect the volume and direction of trade between those nations. For example in 2013 the depreciation of the Japanese Yen has resulted in both an increase in Japanese exports to the US and a decrease in US exports of scrap to the Far East.

Changes in currency values can have a profound impact on imports and exports of flat rolled steel and steel in general around the world.

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