Implications Of The Weak Hryvnia
The Swedish krona has appreciated nearly 10% against the euro in recent months, reversing more than half of the drop it saw between the summer of 2008 and in late February and early March 2009.
The Ukrainian hryvnia however has dropped dramatically, from about €0.095 in mid-June to only about 8 euro cents now. In terms of SEK, the hryvnia has dropped from 1.05 in mid-June to 0.80 now.
Like the case of the U.K. pound that I discussed in the previous post, this illustrates that while currencies have generally moved in a fairly predictive pattern relative to stock prices, which is to say with the U.S. dollar, the yen, the franc and the euro having a negative relationship and other currencies having a positive relationship, some currencies can change their empirical relationship towards stock markets. This can be the case either because of a change in the causal relationship or because some other factor interfered.