The New Zealand Dollar has fallen for a third-day against the Pound and US Dollar as traders took a risk-off approach ahead of the release of the minutes for the US Federal Reserve’s July policy meeting.
Investors are waiting for the US Central Bank to publish the minutes to the Federal Open Market Committee’s July policy meeting and are hoping that the report will offer some guidance as to the whether the Bank will choose to cut back its quantitative easing policy as early as next month.
Demand for the New Zealand Dollar was also softened by the Reserve Bank of New Zealand’s announcement that it plans to impose limits on low equity lending in an effort to cool down the nation’s overheating housing market.
“Although the intention to coo the housing market may decrease the need to increase interest rate anytime soon, it is highly questionable if such measures will be sufficient in decreasing the risk of a major housing bubble. NZD upside risk remains intact,” said Manuel Oliveri, currency strategist at UBS AG in Zurich.
Comments made on Tuesday that the ‘Kiwi’ is overvalued and those made by RBNZ governor Graeme Wheeler also weighed upon the currency. Wheeler announced the home loaning restrictions adding that the Central Bank will not have to raise interest rates.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7901 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5900 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5043 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8767
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9827 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6949 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1405 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2122 >
(Correct as of 10:10 am GMT)
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