The New Zealand Dollar has climbed to its highest level in almost a month against the Pound and has risen to a four-month high against the US Dollar after it was revealed that Federal Reserve Chairman candidate Larry Summers withdrew from the race for the top job.
Summers was seen by the markets as the candidate most likely to have removed the Fed’s stimulus faster than the other two contenders. Such a move would have had a negative impact on the world’s emerging and commodity based currencies including the New Zealand Dollar. His withdrawal from the election race now leaves just two contenders competing for the job with the Central Banks current vice chairman Janet Yellen and former Fed vice chairman Don Hohn left in the running.
“He would have gone quicker and harder in unwinding, but there’s still going to be some sort of tapering by the end of the week,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “The Kiwi’s drifted off its Larry-induced jump and should find support around 81.75 US cents”, he said.
Also supporting the ‘Kiwi’ is the reduced threat of military action being used in Syria. The USA and Russia came to an agreement over a plan to get the Syrian regime to hand over its chemical weapons stockpiles by next year.
Traders in the New Zealand currency should keep their eyes on reports for the country’s latest quarterly consumer confidence, services manufacturing and house prices data.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8210 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6141 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5148 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8768 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2179 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9421 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6283
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1842 <
(Correct as of 09:35 am GMT)
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