The Bankwatch

Tracking the consumer evolution of financial services

Currency shifts, will alter views on outsourcing

This from the US Federal Reserve shows the dramatic shift in values of world currencies that has occurred.  Much of the shift has occurred in 2007.  The biggest shifts are those with high levels of outsourcing , eg Canada, and India.  Those costs will be much higher for Banks with those outsourcing arrangements outsourinng as a result.

FRB: G.5 Release–Foreign Exchange Rates–November 1, 2007

THE TABLE BELOW SHOWS THE AVERAGE RATES OF EXCHANGE IN OCTOBER 2007 TOGETHER WITH COMPARABLE FIGURES FOR OTHER MONTHS.

Numbers represent cost of $1 US in local currency
Oct 07 ‘Sep 07 Aug 07 Oct 06 %change
*AUSTRALIA DOLLAR 0.9 0.85 0.83 0.75 19%
BRAZIL REAL 1.8 1.9 1.96 2.15 -16%
CANADA DOLLAR 0.98 1.03 1.06 1.13 -14%
CHINA P.R. YUAN 7.5 7.52 7.57 7.9 -5%
DENMARK KRONE 5.24 5.36 5.46 5.91 -11%
*EMU MEMBERS EURO 1.42 1.39 1.36 1.26 13%
HONG KONG DOLLAR 7.75 7.78 7.82 7.78 -0%
INDIA RUPEE 39.37 40.17 40.68 45.36 -13%
JAPAN YEN 115.87 115.04 116.73 118.61 -2%
MEXICO PESO 10.82 11.03 11.04 10.89 -1%
*NEW ZEALAND DOLLAR 0.76 0.72 0.73 0.66 15%
SOUTH KOREA WON 914.94 928.6 934.48 952.64 -4%
SRI LANKA RUPEE 112.86 113.34 112.18 105.72 7%
SWITZERLAND FRANC 1.17 1.19 1.2 1.26 -7%
TAIWAN DOLLAR 32.55 33.01 32.96 33.19 -2%
THAILAND BAHT 31.53 32.06 31.8 37.28 -15%
*UNITED KINGDOM POUND 2.04 2.02 2.01 1.88 9%

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Written by Colin Henderson

November 4, 2007 at 12:46

Posted in Uncategorized

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  1. […] in 2007.  The biggest shifts are those with high levels of outsourcing , eg Canada, and India. (see chart at TheBankwatch). Interestingly, supermodel Gisele Bündchen has taken the news of the falling dollar pretty […]


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