The New Zealand Dollar firmed against the Pound and is on track to make a weekly gain against the Euro and other peers after the markets rallied on increased expectations that the recent turmoil in the US will cause the US Federal Reserve to delay tapering its monetary easing programme.
As a result of the government shutdown, economists are predicting that as much as 0.5% could have been knocked off of US quarterly growth. The impact of which is likely to cause the Federal Reserve to postpone its tapering plans until March next year, a move that will benefit riskier currency’s such as the New Zealand Dollar.
“When Federal Reserve Chairman Ben Bernanke said no to tapering, the market pushed its expectation out to December, and after the shutdown that’s now been moved to March. The ‘Kiwi’s’ going to go up because risk is back on” said Imre Speizer, market strategist at Westpac Banking Corp.
The ‘Kiwi’ also found support from the release of data from China. The world’s second largest economy saw growth increase in speed in the July-to –September period, the first rise in growth recorded in three quarters. The nation’s GDP climbed from 7.5% in the second quarter to 7.8% in the third.
Against the US Dollar the ‘Kiwi’ is trading close to a five-month high as the US currency remains under heavy pressure due to the damage caused to the Dollar’s reputation as a result of the debt ceiling debacle.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8490
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6208
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: 0.8801
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1778
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: 1.6108
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1362
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1444
(Correct as of 09:55 am GMT)
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