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Visualizing Currencies’ Decline Against the U.S. Dollar

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Infographic of currency performance against U.S. dollar

Visualizing Currencies’ Decline Against the U.S. Dollar

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In a highly volatile and difficult year for many currencies and equities, the U.S. dollar has been a safe haven for investors.

The greenback has provided exceptional stability, with almost every currency around the world declining against the U.S. dollar in 2022.

This graphic visualizes almost 50 years of the Dollar Index’s returns along with the decline of major currencies against the U.S. dollar in the past two years using price data from TradingView.

U.S. Dollar and Major Currencies’ Returns in 2022

As shown in the graphic above, the past two years have seen nearly every major currency lose value against the U.S. dollar.

One of the currencies hit hardest is the euro, which briefly fell below parity (meaning the euro was worth less than one U.S. dollar) in September and October of 2022, before recovering with a 5.3% rally in November.

Currency2021 Returns2022 YTD Returns
Japanese Yen (JPYUSD) 🇯🇵-10.4%-14.7%
Indian Rupee (INRUSD) 🇮🇳2.0%-9.6%
Pound Sterling (GBPUSD) 🇬🇧-1.1%-8.0%
Chinese Yuan (CNYUSD) 🇨🇳2.7%-8.6%
Euro (EURUSD) 🇪🇺-7.0%-6.0%
Canadian Dollar (CADUSD) 🇨🇦0.7%-6.6%
Australian Dollar (AUDUSD) 🇦🇺-5.7%-5.2%
Swiss Franc (CHFUSD) 🇨🇭-3.0%-1.1%

2022 YTD Returns as of December 14th 2022. (Source: TradingView)

However, the Japanese yen was the major currency hit hardest, having fallen more than 25% since the start of 2021. At the yen’s lowest point this year in October, the currency breached 24-year lows, resulting in the Bank of Japan intervening with $42.8 billion to support the country’s falling currency.

The Swiss franc and Canadian dollar have been the most resilient major currencies against the U.S. dollar since 2021, largely due to the financial and political stability of those nations. Along with this, Canada has benefitted from surging crude oil prices in 2022, exporting the majority of its crude oil across its southern border to America.

Three Reasons for the U.S. Dollar’s Strength in 2022

A variety of factors have contributed to the U.S. dollar’s strength in 2022. The rapid raising of interest rates by the Federal Reserve and tightening of their balance sheet has resulted in U.S. dollars becoming a more scarce and valuable yield-bearing asset.

As interest rates have risen, so have yields for savings accounts and fixed-income securities like U.S. treasuries, making them a more attractive alternative for investors.

At the same time, falling equity prices (especially in the technology sector) only further incentivized investors to pull out of riskier equity markets into the safety of the dollar.

Lastly, compared to many other global economies, the U.S. economy has remained resilient with the fewest risks on its horizon. Europe continues to face an ongoing energy crunch with the Russia-Ukraine conflict nearby, while China’s zero-COVID policies have hampered the country’s manufacturing sector, as well as other industries.

How Will Currencies Fare in 2023?

While the U.S. dollar has surged for much of 2022, its rally has started losing steam in the final months of the year.

In September of 2022 the Dollar Index was up 20% on the year reaching a high of 114.8, but has since retreated and given back more than half its gains for this year so far.

Investors around the world will be watching closely to see if the U.S. dollar’s rise will continue, or if this end-of-year reversal will carry through and provide major currencies some relief going into 2023.

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Money

Mapped: The Income Needed to Live Comfortably in Every U.S. State

A single adult needs to make at least $116k annually to live comfortably in Massachusetts.

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This map illustrates the income necessary for an individual to maintain a comfortable lifestyle in each state.

The Income Needed to Live Comfortably in Every U.S. State

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Individuals in the top 11 most expensive states in the U.S. need an annual income exceeding $100,000 to live comfortably.

This map shows how much income single adults need to live comfortably in each U.S. state. SmartAsset calculated the income needed using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.

In this case, “comfortable” was defined as the annual income required to cover a 50/30/20 budget, allocating 50% of earnings to necessities such as housing and utility costs, 30% to discretionary spending, and 20% to savings or investments.

Massachusetts Ranks First

Massachusetts is the most expensive state to live comfortably in. A single adult needs to make at least $116,022 annually or $55.78 per hour.

RankStateSalary needed for a single working adult
1Massachusetts$116,022
2Hawaii$113,693
3California$113,651
4New York$111,738
5Washington$106,496
6Colorado$103,293
7New Jersey$103,002
8Maryland$102,918
9Oregon$101,088
10Rhode Island$100,838
11Connecticut$100,381
12Virginia$99,965
13New Hampshire$98,093
14Arizona$97,344
15Georgia$96,886
16Alaska$96,762
17Vermont$95,763
18Illinois$95,098
19Delaware$94,141
20Utah$93,683
21Nevada$93,434
22Florida$93,309
23Maine$91,686
24Pennsylvania$91,312
25North Carolina$89,690
26Minnesota$89,232
27Idaho$88,733
28South Carolina$88,317
29Wyoming$87,651
30Texas$87,027
31Tennessee$86,403
32Indiana$85,030
33Montana$84,739
34Kansas$84,656
35Michigan$84,365
36Wisconsin$84,115
37Missouri$84,032
38Alabama$83,824
39Nebraska$83,699
40New Mexico$83,616
41Iowa$83,366
42Mississippi$82,742
43Louisiana$82,451
44South Dakota$81,453
45Ohio$80,704
45Kentucky$80,704
47North Dakota$80,538
48Oklahoma$80,413
49Arkansas$79,456
50West Virginia$78,790

West Virginia is the least expensive for a single adult, who only needs to make an estimated $37.88 per hour, or $78,790 annually.

To live comfortably on your own in the top five states, a person would need to earn nearly double the typical income for single earners, as the U.S. median income for single, full-time workers is around $60,000, according to Labor Bureau data.

If you enjoyed this post, be sure to check out this graphic, which ranks the income a family needs to live comfortably in every U.S. state.

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