December 2024 and Full 2024 in Figures – Currency Thoughts
December 2024 and Full 2024 in Figures
January 1, 2025
In spite of lessening monetary restraint by many central banks during 2024, long-term interest rates tended to end higher. Among economies featured in the table below, the rise in British interest rates ranked highest for both the whole year and in just December.
Between the ends of 2023 and 2024, central bank interest rates fell by 100 basis points at both the Federal Reserve and European Central Bank. The Swiss National Bank’s rate decline totaled 125 basis points last year, while the Bank of England’s policy rate was lowered only a half percentage point. Marching to a a different tune but to a lesser degree than anticipated, the Bank of Japan’s key interest rate only went up 35 basis points last year.
In just the month of December, policy rates were cut by 50 basis points in both Switzerland and Canada and by 25 bps in Mexico, Jamaica, the Philippines, Sweden, Armenia, the Dominican Republic, the United States, and at the European Central Bank. Turkey’s key rate was lowered at last month’s meeting by 250 basis points, while rates in Ukraine and Brazil were increased 50 and 100 basis points, respectively.
The dollar strengthened solidly against a broad range of other currencies last year. Impressive gains, except against the Canada’s currency among those shown below, extended into December. The greenback’s appreciation occurred against the backdrop of relatively strong U.S. economic growth that defied the expectation that a recession would be unavoidable. The dollar also benefited from deregulation plans by the incoming administration, and the view that other policy changes will weaken growth in other economies.
Equity markets performed well in 2024, and Bitcoin was even better bid.
The price of gold also soared, reflecting anxiety associated with other changes planned by President-Elect Trump and the perceived risk that many of such will lift U.S. inflation and the federal deficit.
| 10-Yr Yield | 12/31/24 | Chg in Dec | 2024 Change |
| U.S. | 4.57% | +40 Basis Points | +69 Basis Point |
| Germany | 2.36% | +27 | +34 |
| Japan | 1.07% | +4 | +47 |
| U.K. | 4.56% | +32 | +104 |
| Canada | 3.22% | +14 | +12 |
| Switzerland | 0.21% | +5 | -40 |
| CB Policy Rate | 12/31/23 | Chg in Dec | 2024 Change |
| Fed funds target | 4.25/4.50% | -25 basis points | -100 basis pts |
| ECB deposit rate | 3.00% | -25 | -100 |
| BOJ policy rate | +0.25% | 0 | +35 |
| BOE Bank Rate | 4.75% | 0 | -50 |
| Swiss Policy Rate | +1.75% | -50 | -125 |
| FX | 12/31/24 | Dec Chg in $ | 2024 Change |
| EUR/USD | 1.0356 | +2.2% | +6.6% |
| USD/JPY | 157.26 | +5.1% | +11.5% |
| USD/CHF | 0.9073 | +3.0% | +7.9% |
| GBP/USD | 1.2508 | +1.9% | +19.0% |
| AUD/USD | 0.6188 | +5.4% | +10.1% |
| NZD/USD | 0.5594 | +5.8% | +13.0% |
| USD/CAD | 1.4381 | -2.3% | +8.5% |
| USD/CNY | 6.8983 | +2.7% | +5.8% |
| Equities | 12/31/24 | Chg in Dec | 2024 Change |
| S&P 500 | 5882 | -2.5% | +23.3% |
| Nasdaq | 19311 | +0.5% | +28.6% |
| Djia | 42544 | -5.3% | +12.9% |
| Dax | 18909 | -0.9% | +12.9% |
| Nikkei | 39895 | +4.4% | +19.2% |
| Ftse | 8173 | -1.4% | +5.7% |
| Canada TSE | 24728 | -3.6% | +18.0% |
| Swiss SMI | 11601 | -1.4% | +4.2% |
| Commodities | 12/31/24 | Chg in Dec | 2024 Change |
| Oil, $ per barrel | 71.72 | +3.6% | +0.1% |
| Gold, $ per ounce
Bitcoin, $ |
2641
93468 |
-3.9%
-4.0% |
+27.5%
+111.5%% |
Copyright Larry Greenberg 2024. All rights reserved. No secondary distribution without express permission.
Tags: financial market movements in December and 2024
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