The New Zealand Dollar is trading higher against the Pound and other peers after it rallied on signs that progress was being made in negotiations over the ongoing shutdown of the US Federal government.
A deal to raise the USA’s debt ceiling in the short-term to avoid the world’s largest economy defaulting on its debts grew more likely as the October 17th deadline draws closer.
“Overnight, the New Zealand Dollar against the US Dollar bounced as House Republicans finally started to make some encouraging noises about a deal to raise the debt ceiling. However, the proposed deal would only kick the can down the road another four to six weeks, markets are now likely to remain sidelined until something more definite emerges” said currency strategist Mike Jones from the Bank of New Zealand.
Thursday saw US President Barack Obama meet Republican leaders however no deal emerged after a 90-minute meeting between but talks continued into the night in an effort to reopen the government and avoid a possible U.S. debt default. The US Treasury secretary meanwhile reiterated that the debt ceiling deadline is quickly approaching and warned that the ongoing political crisis is harming the global economy.
In what appears to be blind optimism many economists are saying that a default on the debt ceiling is unimaginable and that a deal will take place despite signs that neither side is willing to back down.
“A default would be a major risk aversion event, like Lehman Brothers – there’s no way they would it get to that” said an Auckland based economist.
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: 0.8327 >
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: 0.5210>
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8793 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2008<
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9193 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6284 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1371 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1557 <
(Correct as of 10:00 am GMT)
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