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Foreign Currency Forecast for New Zealand Dollar – Nuclear concerns in North Korea weigh on ‘Kiwi’

New Zealand Dollars

The New Zealand Dollar exchange rate was trading in the region of 0.8339 against the US Dollar as of 09:51 am

Concerns that seismic activity occurring in North Korea could be due to nuclear testing caused Australasian currencies, including the New Zealand Dollar, to post losses against the safe-haven US Dollar.

As an FX expert with the Commonwealth Bank of Australia asserted: ‘Reports of nuclear testing in North Korea can often make things happen. We don’t know whether that’s to blame, but nothing else has happened.’

The fact that the seismic activity was recorded in areas without a history of earthquakes but with a history of previous nuclear testing was largely responsible for the concerns.

However, the ‘Kiwi’ later enjoyed a rebound, climbing against peers including the Japanese Yen. The South Pacific currency’s rise was triggered by the Yen broadly softening following the publication of comments made by Japanese officials.

The New Zealand Dollar was further supported by news released by Statistics New Zealand. A report showed that the value of credit, debit and store card purchases for the nation increased by 0.3 per cent in January, a fourth monthly rise.

Meanwhile a separate report revealed that New Zealand’s house prices increased by 7.2 per cent last month compared to January of 2012.

In other South Pacific news, a private survey revealed that Australian business confidence held on to advances made last month despite a recent run of disappointing data for the nation. However, as asserted by an industry expert, the ‘recovery mainly reflects external factors, including the rally in global equity markets and generally better activity in China, as well as recent RBA cuts. However, confidence remains below long-run average levels.’

The Australian Dollar also declined significantly against its American counterpart, slumping to more than a three month low as a result of the developments in North Korea and the anticipation surrounding the RBA rate cut.

Current New Zealand Dollar Exchange Rates

The New Zealand Dollar to Euro exchange rate is currently trading at 0.6242     

The New Zealand Dollar to Pound Sterling exchange rate is currently trading at 0.5340

The New Zealand Dollar to US Dollar exchange rate is currently trading at 0.8339

The New Zealand Dollar to Australian Dollar exchange rate is currently trading at 0.8097

The New Zealand Dollar to Canadian Dollar exchange rate is currently trading at 0.8370    

The New Zealand Dollar to Emirati Dirham exchange rate is currently trading at 3.0547

The New Zealand Dollar to Swiss Franc is currently trading at 0.7687

The New Zealand Dollar to Japanese Yen exchange rate is currently trading at 78.4867

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