As speculation surrounding the Federal Reserve tapering stimulus has been dampened by a series of lacklustre US data releases, the New Zealand Dollar has been able to recoup recent losses posted against several of its most traded peers.
However, during the Australasian session the ‘Kiwi’ dropped in response to comments issued by New Zealand’s Prime Minister.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5247 as of 09:55 am GMT
PM John Key asserted: ‘We are likely to see a depreciation of the New Zealand Dollar against the US Dollar, and that’s welcomed because the government’s view is that the foreign-exchange rate is still overvalued.’
This remark reflects those previously made by the Reserve Bank of New Zealand about the ‘Kiwi’ being overvalued.
Key’s statement saw the New Zealand Dollar pair its monthly gain and slide against the majority of its main counterparts.
As currency strategist Khoon Goh observes: ‘When you have comments like that coming from the Prime Minister, you can expect some kind of reaction in the currency markets. [However] we won’t be surprised if this pullback proved temporary, as we’ve seen in many cases in the past.’
The NZD/GBP exchange rate hit a high of 0.5271 pence per Dollar
Domestic data to watch out for this week includes today’s building permit figures and Wednesday’s business confidence and activity outlook gauges.
The South Pacific currency is also likely to experience movement in reaction to developments in the US.
The Federal Reserve’s latest highly anticipated policy meeting begins tomorrow and any allusions to a potential timeline for reining in easing could be the catalyst for significant market volatility.
As one industry expert observes: ‘The market is going to be a bit volatile. What [Fed Chairman Ben Bernanke] says about the tapering of quantitative easing is going to be very important in how global yields move.’
Current New Zealand Dollar (NZD) Exchange Rates
< Down > Up
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8068 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6083 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5247 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8729 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2396 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9047 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6442 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1467 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2041 <
(Correct as of 09:55 GMT)
Comments are closed.