Overnight the New Zealand Dollar recouped previous losses against the Pound and advanced on peers like the US Dollar and Euro as a local measure of business sentiment surged to a multi-year high.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5164 as of 10:30 am GMT
The business confidence index compiled by the New Zealand Institute of Economic Research jumped from 32 in the second quarter to 38 in the third quarter as improving global economic conditions and strong domestic data brightened the nation’s economic outlook and inspired a bout of corporate optimism.
NZIER also stated that the seasonally adjusted measure’s climb from 30 to 32 was the best result since early 2010.
In a statement issued with the report NZIER economist Shamubeel Eaqub observed; ‘Businesses are optimistic, activity is rebounding and this is being gradually realised into more jobs and profits.’
The NZD/GBP exchange rate hit a high of 0.5179 pence per Dollar
A strong result like this adds to the case for the Reserve Bank of New Zealand increasing interest rates next year and increases the likelihood of national growth picking up to an annual pace of 3.5 per cent – levels not seen since before the start of the financial crisis in 2007.
Although New Zealand’s Finance Minister Bill English stressed yesterday that the ‘Kiwi’ is too strong and is damaging the prospects of local exporters, the South Pacific asset rose after the business confidence data was published.
While it went on to shed gains against rivals like the ‘Greenback’, the New Zealand Dollar remained higher against the Pound.
The New Zealand Dollar could well extend gains later today if domestic card spending figures show improvement. Economists have forecast that retail card spending increased by 0.3 per cent in September, month-on-month, after climbing by 0.8 per cent in August.
Tomorrow NZD/GBP movement could be inspired by UK industrial/manufacturing production data.
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: 0.8291 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6109 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5164 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8803 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2064 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9353 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6365 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1368 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1676 >
(Correct as of 10:30 GMT)
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