The New Zealand Dollar has made gains against the Pound and a number of its most traded peers after demand for riskier assets improved in the wake of the declining possibility of military intervention in Syria.
US President Barrack Obama said that he would seriously examine a Russian proposal to put Syria’s chemical weapons under ‘international’ control. Obama said that if such a plan proved to be feasible it would prove to be a significant breakthrough that would avert the prospect of US military action. As a result of the comments demand for riskier assets improved.
Also supporting the currency was the release of upbeat local retail spending figures and the publication of positive business confidence data out of Australia. Core retail spending in the country rose by 1.1% last month, underpinning a strong demand for durable goods. Meanwhile in Australia Business confidence climbed to its highest level since 2011 as firms were more upbeat following the election victory of Tony Abbot’s coalition.
Concerns over a possible tapering by the US Federal Reserve of its monetary easing programme have also backed up the commodity based ‘Kiwi’. Weaker than expected jobs data out of the USA last week has created uncertainty as to whether the Fed will opt to taper this month.
“Renewed uncertainty about the likelihood of Fed tapering in September has dulled the appeal of the US Dollar, fuelling renewed gains in the likes of the ‘Kiwi’ and ‘Aussie’, upbeat economic data in the Antipodeans is adding to Kiwi and Aussie demand” said Mike Jones, currency strategist at Bank of New Zealand in Wellington.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8023
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6053
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5112
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8672
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2463
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9561
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6520
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2019
(Correct as of 11:05 am GMT)
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