European corporate losses from currency volatility were 80% lower between October and December 2021 than they were in the previous three-month period, according Kyriba’s latest currency impact report.
The South African rand, Australian dollar and Mexican peso were the most volatile currencies during this period.
Increased volatility also means higher bid-ask spreads and traditionally more expensive hedging costs
Kenneth Broux, Societe Generale
These currencies tend to be among the most volatile during periods of market turmoil when pessimism around the global economy increases.
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