Why is this important
The dollar’s continued rise for the second consecutive day after four days of decline could signal a reversal in the currency market trend. The strengthening of the main currencies simultaneously indicates the weakening of the sum under the influence of external or internal factors.
What happened
- The dollar rose by 28.04 soums to 12,129.33 soums (second day in a row);
- The euro increased by 30.08 soums to 14,061.53 soums;
- The pound increased by 73.73 soums to 16,191.44 soums;
- The Russian ruble increased by 1.16 soums to 149.17 soums;
- The Chinese yuan strengthened by 4.39 soums to 1702.86 soums;
- The Japanese yen is the only currency that has decreased in value: 79.50 sum (-0.21);
- The Kazakh tenge increased slightly by 0.09 soums to 22.55 soums.
Context
After the period of strengthening of the soum, associated with the growth of export revenues and remittances, the national currency began to adjust. The second consecutive day of dollar appreciation (+118 soums for two days) may be related to increased demand for foreign currency from importers or a change in global market conditions.
The decrease in yen against the backdrop of rising other currencies reflects global trends: the Japanese currency is weakening against the dollar in global markets due to the Bank of Japan’s soft monetary policy. The rise in the ruble (+1.16 soums) indicates stability in trade relations with Russia.
The Central Bank continues the policy of market exchange rate formation, allowing the exchange rate to fluctuate depending on supply and demand without significant interventions.
