Although accelerating inflation in China increased concern for New Zealand’s trade prospects, the ‘Kiwi’ was supported during the local session by some better-than-expected domestic news.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5255 as of 10:10 am GMT
An unexpected 2.7 per cent acceleration in Chinese inflation prompted one industry expert to comment: ‘If China has higher than desirable inflation, it will have to tighten monetary policy and if it tightens, economic growth will slow down. We may have a short pop higher in the Kiwi, and any decent rallies will see importers sell into it.’
Meanwhile, with local business confidence holding at a three-year high in the second quarter and retail card spending rising by more than expected, the New Zealand Dollar was able to strengthen against the Pound.
Card retail sales increased by 1.1 per cent in June, month-on-month, rather than the 0.6 per cent gain expected.
A separate report showed that property values in New Zealand climbed to a new record, rising at an annual pace of 7.6 per cent.
The New Zealand Dollar to Pound Sterling (NZD/GBP) hit a high of 0.5278
The South Pacific currency also posted a modest advance against the US Dollar.
During Australasian trade New Zealand’s Finance Minister Bill English also announced to parliament that the budget deficit may be 5.5 billion New Zealand Dollars in the year ending in June. If accurate, this result will be 2 billion New Zealand Dollars narrower than forecast in the 2012 budget.
The ‘Kiwi’s advance on the Pound was aided as the British currency weakened in response to worse-than-anticipated industrial production figures for the UK.
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: 0.7867 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6108 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5255 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8577 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2806 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9030 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6376 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1662 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2142 <
(Correct as of 10:10 GMT)
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