The New Zealand Dollar has strengthened beyond 51 pence as weak US economic data cast doubt over how quickly the US Federal Reserve will taper its monetary easing programme.
The Kiwi rose to 0.51075 above the Pound
According to yesterdays data released by the US Commerce Department the US economy grew at an annualised pace of 1.8% in the first quarter of 2013, slower than the previous reading of 2.4%. The slowdown has given investors pause for thought after Fed Chairman Ben Bernanke signalled that he will begin to reduce the $85 billion worth of bond purchases as long as data backed the picture of a sustained US economic recovery.
“U.S. dollar weakness is dominating in what looks to be good follow-through from yesterday’s weaker-than-expected third cut of the U.S. GDP data,” and this has helped commodity currencies, said RBC Capital currency strategist Sue Trinh.
Adding to the Kiwi’s strengthening was the release of positive data. Business confidence in the smaller Oceanic nation jumped to a three-year high in June as the economy was supported by a booming construction sector.
Also adding support was the announcement made by New Zealand Reserve Bank deputy governor Grant Spencer who told a business audience that hiking interest rates was not the right option to reign in the country’s overheating property market. Instead he said that the bank will introduce restrictions on home loan leveraging to reduce the growing bubble.
Markets appeared to have ignored data showing that the country’s trade surplus in May was reduced by a bigger than expected margin as economists predict that the amount of trade will have recovered in June.
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: 0.7829 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6006 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5107 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8408 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2772 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9579 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6648
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2234 <
(Correct as of 09:45 am GMT)
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