24 October 2024
Monthly Market review – Download Article
An important feature during the quarter was dollar weakness, a reversal of the pattern of the previous six
months. On a trade weighted basis, the dollar fell by 4.8% in Q3, wiping out its earlier 2024 gains, and making
a significant contribution to returns in USD terms from non-US markets. The most extreme mover was the
yen, whose rise of 12%, nearly all of which came in late July/early August, converted a fall of 4.9% in Japanese
equities in yen terms in Q3 into a 7% gain in USD terms. The euro and sterling also saw significant rises, and
emerging markets currencies, which have undergone a long period of weak performance in the face of the sharp
policy tightening in the US, enjoyed a bounce late in the quarter as the Fed’s rate cut approached, boosted
further by China’s stimulus policies, although still leaving ample recovery potential ahead.
