RegencyFX give their monthly update on developments in the foreign exchange markets. Living abroad means keeping a close eye on currency movements, and December 2024 brought some notable shifts that affect expat wallets. Here’s what you need to know about the latest currency trends and their impact on your finances abroad.

Dollar Takes a Breather

After dominating throughout most of 2024, the US dollar finally showed signs of cooling off in December. This breather came as US economic data softened and markets began rethinking their expectations about Federal Reserve policy. For American expats abroad, this meant their dollars didn’t stretch quite as far as they had earlier in the year.

Euro Shows Fresh Life

Good news for those living in or earning in euros—the European currency found some renewed strength thanks to improving economic indicators across the Eurozone. This uptick provided some welcome relief for eurozone-based expats who had been watching their purchasing power shrink against the dollar throughout the year.

Yen’s Mixed Signals

Japan’s currency made some gains, helped along by both a more dovish Bank of Japan and the softer dollar. However, ongoing concerns about Japan’s economic health kept these gains in check—something expats in Japan should keep in mind for their financial planning.

Emerging Market Roller Coaster

For expats in developing economies, December was a mixed bag. While some currencies like the South African Rand benefitted from rising commodity prices, others struggled. The Turkish Lira, for instance, continued to face pressure from domestic economic challenges—a crucial consideration for anyone living or investing in these markets.

Looking Ahead

While December was relatively quiet overall, several factors could shake things up in the coming months. Keep an eye on US monetary policy shifts, Eurozone economic developments, and various geopolitical risks that could impact currency markets. As an expat, staying informed about these trends remains crucial for managing your international finances effectively.

Remember: Currency movements affect everything from your salary and savings to everyday expenses and property purchases, so it’s worth consulting with an international payments specialist who understands the unique challenges of expat finances in your specific situation.

Currency ranges in December

GBP/EUR

High: 1.2180 on December 25, 2024

Low: 1.2007 on December 27, 2024.

GBP/USD

High: 1.2796 on December 9, 2024.

Low: 1.2479 on December 20, 2024.

GBP/AUD

High: 2.0360 on December 25, 2024.

Low:  1.9730 on December 4, 2024

EUR/USD

High: 1.0605 on December 6, 2024.

Low: 1.0347 on December 31, 2024.

As a valued member of the Expat Network, Regency FX is pleased to extend a complimentary, no-obligation consultation to guide you through their currency exchange services, and you will also get access to preferential exchange rates. Please click here to request your free quote.

If you have any questions about international payments or would like a free, no-obligation quote, the team at Regency FX would love to hear from you.