The NZD to GBP exchange rate continued its run of gains by advancing to a six-month high following the release of positive trade surplus data. The NZD to EUR rate climbed to a four month high and the NZD to USD rate advanced to a three year high.
The ‘Kiwi’ surged after the release of a report which showed that New Zealand’s monthly trade surplus expanded far more than economists had forecast boosting confidence in the performance in the South Pacific nation’s economy.
According to the data released by Statistics New Zealand the trade surplus widened to its highest level since April 2011. The nation recorded a surplus of NZ$818 million in February, smashing the previous month’s figure of NZ$286 million.
The cause of the rise was the increase in exports of dairy goods to China which soared by 49% from the previous year.
“The rise in dairy this month was supported by logs and meat, with much of the increase in these commodities destined for China,” said the industry and labour statistics manager at Statistics New Zealand.
Economists widely ignored comments by New Zealand’s Finance Minister Bill English who said that the currency is too strong and is posing a challenge to the nation’s exporters.
“The currency is a bit too high, it makes it difficult for our economy to rebalance,” English said in an interview in Hong Kong.
Also supporting the ‘Kiwi’ was the general increase in global risk sentiment. Expectations are rising that the Chinese authorities will introduce stimulus measures after the recent run of disappointing economic data releases.
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,0.8675 ,
New Zealand Dollar,, Pound Sterling,0.5236 ,
New Zealand Dollar,,Euro,0.6306 ,
New Zealand Dollar,,Australian Dollar,0.9389 ,
[/table]
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