The ‘Kiwi’ took a bit of a kicking during the local session, as disappointing domestic and foreign news combined to knock the wind squarely out of the South Pacific currency.
The New Zealand Dollar exchange rate was trading in the region of 0.7809 against the US Dollar as of 09:45 am GMT
The Federal Reserve’s announcement, in which it pledged to end quantitative easing completely by the end of 2014 if US economic recovery continued to hit targets, adversely affected the commodity driven ‘Kiwi’.
The currency was further weakened by less-than-impressive domestic growth data. Although industry experts expected New Zealand’s economy to expand by 0.6 per cent in the first three months of this year, the nation’s GDP only grew by 0.3 per cent.
Losses were compounded as Chinese manufacturing PMI lowered the outlook for one of New Zealand’s main trading partners. HSBC’s gauge of manufacturing for the Asian nation hit 48.3 in June, significantly below economists’ 49.1 forecast.
The New Zealand Dollar to Pound Sterling (NZD/GBP) Exchange Rate dropped to 50.50 pence per Dollar
Although the ‘Kiwi’ posted extensive losses against the majority of its most traded peers, some industry experts believe the currency’s current downward trajectory is needed.
According to Sydney-based economist Chris Tennent-Brown: ‘This is definitely a correction towards what most people think is fair value. Most people accept somewhere in the 70 US cents is where the export sector should be able to live.’
The South Pacific currency was able to advance to a four-year high against a broadly softening Australian Dollar during the local session, although a downward correction later saw it trading in the region of 84.87 Australian cents.
Current New Zealand Dollar (NZD) Exchange Rates:
< Down > Up
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7809 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5918 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5058 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8490 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2773 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9767 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6930 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1786 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2277 <
(Correct as of 09:45 GMT)
Comments are closed.