THE Kiwi began trading last week Monday the 23th January 2012 around the 1.93 mark against the British Pound and 1.61 to the Euro. The Kiwi closed slightly stronger on Friday the 27th January 2012 at 1.91 to the British Pound and 1.60 to the Euro.
The New Zealand Dollar is even firmer after the Fed announced that they would be keeping their interest rates exponentially lower until at least 2014. This sudden movement in strength was further boosted by the New ZealandReserve Banks decision to hold their interest rates unchanged at 2.5% until the next review meeting is held.
Economists are questioning weather the Reserve Bank has finally begun moving away from their current tightening monetary policy to a more relaxed regime.
Alan Bollard offered that it was a sensible and prudent decision to hold rates unchanged for the time being as the future of the Euro was still uncertain.
However this news regarding the interest rate decision was overshadowed by the current economic climate in Europe, particularly the situation in Greece.
Traders are now keeping a close eye on the situation in Greece for any signs of a possible resolve with a weather eye turned to China as fears mount of a possible economic downturn. Investors’ appetite for riskier assets was further boosted by positive economic data coming out of America and the EU.
GBP / NZD: 1.912
EUR / NZD: 1.605
USD / NZD: 1.220
NZD / JPY: 62.74
Exchange rates as of 09:55, 30th January 2012
Composed by Paul Gerber
:: Note: The above exchange rates are based on “interbank” rates.
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