The New Zealand is on course to make a 1% weekly loss as investors focus on the political and economic situation in the United States.
Uncertainty over when the Federal Reserve will begin to taper its monetary easing programme and concerns over a possible shutdown of Federal government has weighed heavily upon the markets. Demand for riskier commodity based currencies such as the ‘Kiwi’ fell as traders fell into a holding pattern ahead of the release of US data later in the session.
Investors are monitoring whether the latest round of political posturing between the Republicans and President Barrack Obama will result in the shutdown of several Federal governmental departments. The debt ceiling needs to be lifted again next month for the US to be funded. Earlier in the year the debt cap issue plunged the markets into turmoil and this time it looks set to do the same.
The ‘Kiwi’ managed to make gains after the Federal Reserve surprised the markets by not tapering its quantitative easing programme earlier in the month but renewed expectations of a cut occurring in October has begun to put pressure on the worlds riskier currencies.
“It just shows how offshore-focused markets are. It’s all about global developments,” said Dan Bell, a currency strategist in Auckland. “The New Zealand Dollar’s consolidating with a bit of a downside bias after a big rally following the no-taper from the Fed.”
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8283
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5151
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2072 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9412 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6308 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1257
(Correct as of 10:35 am GMT)
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