The New Zealand Dollar exchange rate was trading in the region of 0.8415 against the US Dollar as of 09:36 am
The New Zealand Dollar continued to benefit from better-than-expected housing and credit card spending data yesterday, posting gains against major competitors the US Dollar, Euro and British Pound over the course of trade. However, the currency did decline against its Australian counterpart and a volatile Japanese Yen.
After a gauge of Australian business confidence – compiled by Westpac – showed improvement the odds of the Reserve Bank of Australia cutting rates in March fell, causing to ‘Kiwi’ to drop against the ‘Aussie’ until it traded in the region of 81.32 Australian cents.
Meanwhile, conflicting statements from the G-7 concerning exchange rates caused the Japanese Yen to yo-yo significantly. While the Group of Seven pledged that its members would avoid taking steps to weaken their own currencies it also intimated a concern regarding recent excessive movements in the Yen. Eventually this development, coupled with anticipation surrounding Friday’s meeting of the G-20 and Japans upcoming fiscal policy review statement, allowed the Yen to gain. As the market began to settle the ‘Kiwi’ slumped to trade within the region of 78.22 Yen.
After the G-7’s statements were publicised Bill English, New Zealand’s Finance Minister, downplayed the likelihood of his nation engaging in currency intervention.
English asserted: ‘We’re not willing to take the kind of huge risks involved in large scale speculation in the exchange rate with taxpayer dollars. To influence the exchange rate you need a couple of hundred billion US in the bank so they take you seriously. We’d be out in the war zone with a peashooter.’
Similarly, a currency analyst with key lender the Commonwealth Bank of Australia proposed: ‘An important reason why the Kiwi is so strong is because New Zealand’s economy is relatively better than many other economies. It’s very unlikely that the New Zealand government or the Reserve Bank of New Zealand will intervene to push down the Kiwi dollar.’
In the hours ahead New Zealand’s business performance of manufacturing index and Japanese 4Q GDP figures could cause ‘Kiwi’ notable movement.
Current New Zealand Dollar Exchange Rates
The New Zealand Dollar to Euro exchange rate is currently trading at 0.6256
The New Zealand Dollar to Pound Sterling exchange rate is currently trading at 0.5376
The New Zealand Dollar to US Dollar exchange rate is currently trading at 0.8415
The New Zealand Dollar to Australian Dollar exchange rate is currently trading at 0.8134
The New Zealand Dollar to Canadian Dollar exchange rate is currently trading at 0.8405
The New Zealand Dollar to Emirati Dirham exchange rate is currently trading at 3.0623
The New Zealand Dollar to Swiss Franc is currently trading at 0.7657
The New Zealand Dollar to Japanese Yen exchange rate is currently trading at 78.5568
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