With commodity-driven currencies bolstered by the news that the Federal Reserve has no immediate intention of tapering easing, the ‘Kiwi’ strengthened against its US peer. However, the New Zealand Dollar edged lower against the Pound as the British currency climbed on speculation that its recent decline had been excessive.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5240 as of 10:20 am GMT
The ‘Kiwi’ rallied as Fed Chairman Ben Bernanke issued surprisingly dovish comments regarding US economic recovery and fiscal policy.
Bernanke stated: ‘Highly accommodative monetary policy for the foreseeable future is what’s needed in the US economy.’
The news, and the consequent volatility seen in the currency market, prompted this remark from industry expert Tim Kelleher: ‘They’re talking about tapering, but that doesn’t mean it’s going to happen. We could see some quite violent moves in the currency, and we could see it back to 82-83 US cents.’
The New Zealand Dollar to Pound Sterling (NZD/GBP) hit a low of 0.5157
Domestic news also helped the New Zealand Dollar achieve a three-week high against its US counterpart and fight back against a strengthening Pound.
According to the Business New Zealand Performance of Manufacturing Index, the nation’s manufacturing sector continued its expansion last month, although at a slower pace than in May.
The gauge remained above 50 (the mark separating growth from contraction) but edged down from the 59.2 recorded in May to 54.7 in June.
As the European session began the ‘Kiwi’ was also trading higher against the Euro and Australian Dollar, but had lost ground against a bullish Yen.
Current New Zealand Dollar (NZD) Exchange Rates
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7899 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6056 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5240 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8548 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2663 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9112 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6539 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1693 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2159 >
(Correct as of 10:20 GMT)
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