The New Zealand Dollar strengthened against Sterling and climbed to a two-month peak against the US Dollar as investors await the outcome of Tuesday’s speech by Reserve Bank governor Graeme Wheeler.
The currency suffered a knock over the weekend after the New Zealand dairy industry was hit by another food scare. The New Zealand Ministry for Primary Industries took action and revoked the export certificates on four consignments of lactoferrin produced by Westland Milk after tests showed that they contained unacceptable levels of nitrates. This latest scare comes hot on the heels of last week’s larger food scare at the country’s biggest dairy company, Fonterra Cooperative Group.
The scare will be a further blow to the country main export of dairy products as the Chinese who are the biggest importers of dairy products lose confidence in the safety of the products. Dairy accounts for around a quarter of New Zealand’s exports.
“They’re all little things that add up to tarnishing the 100% Pure brand,” said Imre Speizer, market strategist at Westpac Banking Corp.
Traders largely ignored the food scare on Monday morning as they prepare for tomorrow’s speech by Reserve Bank of New Zealand governor Graeme Wheeler. The speech is expected to highlight that the Central Bank has gone through a consultation phase on introducing restrictions on low equity mortgage lending, and is expected to impose the regime in a bid to cool the overheating Auckland and Canterbury housing markets.
The currency is likely to see volatility on Wednesday when the US Federal Reserve releases the minutes for its latest policy meeting.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8145
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: 0.6392
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2276
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6367
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1304
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1889
(Correct as of 10:20 am GMT)
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