During Australasian trading the New Zealand Dollar edged higher against the Pound as comments issued by the Governor of the Reserve Bank of New Zealand lent the commodity-driven ‘Kiwi’ support.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5170 as of 10:05 am GMT
Although the RBNZ has previously stressed the dangers a strong local currency pose to the nation’s exporters, Governor Graeme Wheeler has asserted that the New Zealand Dollar could climb when interest rates are increased next year.
As the RBNZ is one of the few major central banks revealing an intention to hike borrowing costs in 2014 the ‘Kiwi’ could be driven higher.
While speaking to a parliamentary committee Wheeler stated; ‘The concern will be that the interest differential between New Zealand and any of the advanced economies will widen. That could increase pressure on the exchange rate and put the traded goods sector under more pressure.’
The ‘Kiwi’ initially softened after Wheeler’s comments, but the South Pacific asset went on to rally modestly against its US counterpart. The NZD/USD pairing edged away from an eight-week low before the close of local trading in spite of the increasing odds of the Federal Reserve tapering stimulus piling pressure on higher-risk currencies.
The NZD/GBP exchange rate hit a low of 0.5150 pence per Dollar
The New Zealand Dollar also remained stronger against the Pound after the UK asset weakened yesterday following the release of domestic inflation data.
However, while the NZD/GBP pairing was trading in a fairly tight range the ‘Kiwi’ did slip after UK employment data beat expectations.
While the UK economy added 177,000 positions in the three months to September, considerably more that the 113,000 estimated, the unemployment rate edged down from 7.7 per cent to 7.6 per cent.
The Pound rallied against its rivals after the data was published, although gains were limited ahead of the release of the Bank of England’s inflation report.
With New Zealand’s business performance of manufacturing index due out at 21:30 and retail sales figures being published at 21:45 GMT, additional NZD/GBP fluctuations are likely to occur before tomorrow.
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: 0.8217 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6121 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5170 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8848 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2165 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9348 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6341 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1310 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1590 –
(Correct as of 10:05 GMT)
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