New Zealand Dollar Falls on Interest Rate Drop

The Kiwi weakened substantially after the announcement of lower interest rates to open the UK trading day on Tuesday at 1.9615 to the Pound and 1.2529 to the US Dollar.

 
 

NZD

THE New Zealand Dollar began trading at around 1.9289 to the British Pound last Monday and around 1.2440 against the US Dollar. The Kiwi moved sideways for most of the week and closed at 1.9369 to the Pound and 1.239 to Dollar on Friday. The Kiwi weakened substantially after the announcement of lower interest rates to open the UK trading day on Tuesday at 1.9615 to the Pound and 1.2529 to the US Dollar.

The NZ Reserve Bank Governor, Graeme Wheeler, announced released a detailed plan on Tuesday on how the bank plans to tackle the high loan-to-value home lending problem. The restrictions to be implemented from the 1October 2013 will reduce the amount of high LVR loans banks can offer, making it more difficult to get a mortgage with a deposit of less than 20%.

Thursday will see an array of German and Eurozone Purchasing Manager Indexes for Manufacturing and services. Manufacturing Readings above 50 indicate an increase in business and expansion in the economy, while readings under 50 show signs of contraction. All of the forecasted figures are above 50 and any deviation is likely to have an impact on all emerging markets including the Kiwi

In the local Market on Wednesday the National Credit Card Spending will be announced and will shows signs of disposable spending in the market.

Composed by Elizabeth Britz

Exchange rates as of 09:22, 20 August 2013

GBP / NZD: 1.9599

EUR / NZD : 1.6714

USD / NZD : 1.2517

AUD / NZD : 1.1313

Note: The above exchange rates are based on “interbank” rates.  If you want to transfer money to New Zealand then please register/login or call us for a live dealing rate. Make use of a Rate Notifier to send you alerts when the New Zealand exchange rate reaches levels you are looking for.

 
 

 

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