The Pound fell against all of its most traded peers on Monday and continued to slide against the New Zealand Dollar on Tuesday to fall beyond a one-month low.
The ‘Kiwi’ climbed against the UK currency after Sterling was weakened by comments made by a Bank of England official. BOE deputy governor Charlie Bean said that further appreciation of the Pound could harm exports and hamper the UK’s economic recovery.
Mr. Bean’s comments are just the latest of several Central Bank policy makers to talk down their currency. Australian officials have also tried to weaken the Australian Dollar by talking it down.
“The Bank of England’s Bean was the latest in a long line of global central bank officials to talk down their currency. In this regard, it will be interesting to see what the Reserve Bank of New Zealand has in store for the New Zealand Dollar at this Thursday’s policy meeting,” said a market strategist at Bank of New Zealand.
The ‘Kiwi’ also pushed higher against the Euro after data out of Germany disappointed. The Eurozone’s biggest economy saw its trade balance figures come in below forecasts and its current account figures also come in below expectations. The Euro was also weakened by a separate report which showed that Italy’s GDP contracted more than expected on a year on year basis.
The New Zealand Dollar could find further support if today’s domestic data supports. Home sales, electronic card transactions and Crown accounts are all due to be published.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8489 ,
New Zealand Dollar,, Pound Sterling,0.5101 ,
New Zealand Dollar,,Australian Dollar,0.9390 ,
New Zealand Dollar,,Canadian Dollar,0.9438 ,
[/table]
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