The New Zealand Dollar has made gains against the Pound and the majority of its most traded peers after the currency made gains in overnight trading on increasing speculation that the nation’s Central Bank is likely to increase interest rates.
Yesterday saw Reserve Bank Governor Graeme Wheeler announce that policy makers chose to maintain interest rates at a record low level of 2.5%. His comment s that an end to monetary stimulus could happen in the near future also got traders excited.
“The Reserve Bank is getting more and more concerned about inflationary pressures coming out of housing and coming out of construction, if the inflation numbers do start to work their way higher than the Reserve Bank will need to lean against that by looking at raising interest rates.
‘The response from the market has been to bring forward the time when the Reserve Bank may be forced to start to raise rates. “The market seems to be interested in buying the New Zealand dollar pretty much across the board,” he said. ”The New Zealand economy is a bit ahead of everywhere really; our economy is performing quite well.” said Derek Rankin, a director at Rankin Treasury Advisory.
Also supporting the currency is the weaker US Dollar. The ‘Greenback’ has remained under pressure after Thursday’s Durable Goods data disappointed investors even though orders increased by a greater than expected level of 4.2% month on month in June.
Current New Zealand Dollar (NZD) Exchange Rates
< Down > Up
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8085 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6083 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5248 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8710 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2368 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9053 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6437 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1480 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2044 <
(Correct as of 14:40 pm GMT)
Comments are closed.