During the local session the New Zealand Dollar enjoyed a modest rally, strengthening against several of its currency counterparts on the strength of comments issued by Bill English, New Zealand’s Finance Minister.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5271 as of 10:50 am GMT
Demand for the ‘Kiwi’ was stoked by English’s remarks regarding interest rates.
The Finance Minister asserted: ‘New Zealanders think they are going to have 5 per cent rates forever. Well they aren’t. They are going to go up, it’s just a matter of when.’
However, English did go on to express concerns that if New Zealand increased rates before other nations, the boost it would give to the ‘Kiwi’ could undermine the nation’s economic recovery: ‘One of the risks to New Zealand is being the first developed country to lift interest rates […] we’d end up with an exchange rate going too high.’
The New Zealand Dollar to Pound Sterling (NZD/GBP) hit a high of 0.5311
Although ‘Kiwi’ gains were limited as a result of some disappointing economic news from China, one of the South Pacific nation’s major trading partners, English’s address ended on a positive note: ‘A number of recent indicators confirm the economy is on the right track and the future is looking brighter. We are seeing momentum building towards a stronger, more stable economy.’
While New Zealand’s performance of manufacturing index, due out at 23:30 GMT, could support the ‘Kiwi’ if it comes in higher than May’s level of 59.2, the main driver of exchange rate movement in the hours ahead will be news from the US.
Current New Zealand Dollar (NZD) Exchange Rates
< Down > Up
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7850 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6128 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5271 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8517
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2702 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8966 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6350 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1729 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2062 <
(Correct as of 10:50 GMT)
Comments are closed.