The New Zealand Dollar has recovered from yesterday’s losses after it managed to shake off the impact of China and Russia banning the sale of the country’s largest dairy producer’s products following a health scare.
“The currency would bounce after the pounding, but the speed at which it has recovered has surprised even us” said Bank of New Zealand currency strategist Mike Jones. The ‘Kiwi’ recovered after Fonterra Cooperative Group Ltd confirmed that China has not imposed a blanket ban on New Zealand dairy products.
Action taken by the New Zealand government has also helped to allay fears over the food scare after Prime Minister John Key promised to launch a ‘forensic’ investigation into Fonterra’s facilities.
“The biggest and most important thing we can do is, as part of that full review, we are open and honest about what went wrong and demonstrate that there’s change,” Mr Key was quoted as saying by local media.
Finance Minister Bill English today told Parliament he expects the local economy will only suffer a small hit from the food scare. CBA’s Tennent-Brown said tomorrow’s GlobalDairyTrade auction will give a good steer on the market’s reaction to the news.
Also adding support to the New Zealand Dollar’s recovery was the rally of the Australian Dollar which strengthened after the Australian Central Bank lowered interest rates by 25 basis points to 2.50%. The expected cut sent investors back towards the ‘Kiwi’.
Traders of the ‘Kiwi’ will now be turning their attention to Wednesdays second quarter jobs data. Economists are expecting employment in the country to rise by 0.3% from the previous quarter with the unemployment rate expected to fall to 6% from 6.2%.
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: 0.7874 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5936 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5125 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8758
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9511 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6845 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1417 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2248 <
(Correct as of 10:25 am GMT)
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