US Dollar / Danish krone - USD/DKK

Linked with the Euro via the ERM II (Exchange Rate Mechanism II), the Danish krone (DKK) has been maintained by the Central Bank of Denmark for 10 years in a fluctuation band in relation with the Euro that is never superior to +/-0.5% whereas the constraint fixed by the ERM II impose in theory a fluctuation band 30 times more flexible (+/-15%).

So the exchange value of the EUR/DKK has fluctuated between a lower point of 7.4234 and the higher at 7.4674 since January 2001.

Isolated on a week taken by chance during this period, the encephalogram of this cross is nearly flat, even if the fluctuations draw to long term.

It isn’t a surprise that fluctuations of the exchange rate USD/DKK (American Dollar ) Danish krone) are one day at a time nearly lined up with the fluctuations of the famous EUR/USD cross, star of the Forex or more precisely on the back of this famous cross, the couple USD/EUR.

However, the operators that want to invest on the USD/DKK cross have to play with the certain discrepancy, due to the primacy of the EUR/USD cross on the Forex.

On the USD/DKK cross (linked to the evolutions of EUR/USD), a small bearish trend was observed from July 2001 (USD/DKK = 8.7619) to March 2002 (USD/DKK = 8.5332) then this decrease accelerated (as the Danish krone appreciated against the Dollar when the Euro increased in value) until an exchange value USD/DKK = 5.5798 reached in December 2004.

During the year 2005, the Danish krone loses ground to list at USD/DKK = 6.36 in November 2005, then we see a continuous appreciation of the DKK against the USD, that represents a decrease of the USD/DKK which reaches the lower point of 4.6819 in July 2008.

The re-appreciation of the Dollar is memorable in the context of the financial and stock-exchange crisis during the Fall of 2008, as the USD/DKK cross was fast at 5.9223 in November 2008, and 5.8918 in March 2009.

Then the decrease of the dollar is obvious and again parallel to the re-appreciation of the Euro from the second trimester of 2009, as the USD/DKK cross lists at 4.9568 by mid-October 2009, that represents levels next to the ones of July 2008.