The New Zealand Dollar made gains against the Pound and the majority of its most traded peers on Tuesday as demand for higher yielding assets were bolstered by expectations that a deal will be made regarding the US debt ceiling and as Australia’s Central Bank left open the possibility for further interest rate cuts.
The ‘Kiwi’ rose as investors expect the currency to benefit from any resolution to the ongoing crisis in the US. Despite the three-week long government shutdown creating headwinds in the markets US stocks have risen for four days straight and if a deal can be reached riskier assts such as the New Zealand Dollar will benefit. If the Republican-controlled Congress and Democrat President Barack Obama can’t reach a deal by then, the US faces defaulting on its sovereign debt obligations if it can’t raise its debt limit an unprecedented event which has the potential of tipping the global economy back into recession.
“People do seem to think they’re going to do something, what that optimism is based on is not exactly clear. The ‘Aussie’ and ‘Kiwi’ managed to lift against the US Dollar, and both are near highs for quite a while,” said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia.
The New Zealand Dollar also found support from yesterday’s House sales data. In September the number of hoses sold leapt by 19% on a year by year basis, well above the previous reading of a 8.5% rise.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8399 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6193 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5249 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8798 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1905 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9051 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6145 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1365 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1513 <
(Correct as of 10:30 am GMT)
Comments are closed.