The New Zealand Dollar is weaker against the Pound and has made its biggest decline in a month against the US Dollar as a decline in Asian stocks and uncertainty over whether the US Federal Reserve will choose to taper its monetary easing programme.
In early morning trading the equity markets in Asia fell causing demand for riskier markets to fall which had a knock on effect for the Oceanic currencies. The New Zealand Dollar as a result retreated from a five-year high against its Australian relation. Also weighing upon the Tasman currencies were traders adjusting their bets that the two nations’ economies are diverging.
Investors favoured the Australian currency following yesterday’s positive manufacturing data release out of China.
As the day progressed the New Zealand Dollar managed to pare some of its declines after New Zealand’s biggest dairy company and exporter, Fonterra Cooperative Group revealed that it has hiked its forecasted payout to farmers for the second time in two months.
“We had expected global milk prices to fall over the course of the season as New Zealand supply recovered from drought and as emerging market economies slowed. Instead, global milk prices have remained extremely high, High prices have prevailed right through the period of peak volumes at the fortnightly Global Dairy Trade auctions, and hence revenues must have been much higher than anticipated at the start of the season” Westpac Banking Corp chief economist Dominick Stevens said in a note.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8296 <
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: 0.5185 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8835<
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1930
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: 1.1318 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1721 >
(Correct as of 11:00 am GMT)
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