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Apparel Currencies Stabilize in September After Wild August Ride

After dipping by more than 1 percent in August, the dollar remained relatively stable in September compared to most world currencies, with the U.S. dollar index closing up by 0.3% for the month.

Key apparel currencies fluctuated, however, with the Indonesian rupee weakening the most against the U.S. currency in the month, while the Japanese yen and Indian rupee strengthened the most.

The euro was virtually flat against the U.S. dollar in September, closing the month about 12 percent below year-ago levels.


The U.K. pound sterling fell by 1.3% against the dollar in the month, ending 6.5% lower than this time last year.


After its sharp devaluation in August, the Chinese yuan rose by 0.4% in September, though has lost 3 percent of its value in the past year.


The Indian rupee rose by almost one percent, after a devaluation that resulted in a 3.6% decline in August. The rupee is down almost 7 percent from its year-ago level relative to the dollar.


The Indonesian rupiah fell by 4.5% versus the dollar, and has lost 20 percent of its value in the past year despite efforts by the country’s central bank to shore up the currency. China’s devaluation of the yuan, lack of confidence in the Indonesian economy, and the decades-old practice of local companies transacting in U.S. dollars instead of rupiahs have been cited as factors contributing to the currency’s fall.


The Pakistani rupee fell by 0.3%, after a 2 percent decline in August allowed by the central bank to support exports.


The Bangladeshi taka rose by almost 0.2% in September, after a tiny decline in August.


After a devaluation in August—designed to keep Vietnam’s exports competitive with those of China—that resulted in a loss of 3 percent of its value in the month, the Vietnamese dong rose by 1 percent relative to the dollar in September, though remains 4 percent below year-ago levels.


The Japanese yen gained 1 percent versus the dollar in September, though remains almost 16 percent lower than last year at this time.