THE New Zealand Dollar started last week slightly weaker against most major currencies as trading was reduced due to holidays in Auckland and Australia, with the Kiwi was trading at 1.1943 to the US Dollar and 1.887 to the British Pound.
Tuesday saw the Kiwi Dollar rise following a better than expected merchandise trade report. Due to the Reserve Bank of New Zealand (RBNZ) meeting on Thursday, the NZ dollar fell during Wednesday’s trade.
The RBNZ held the official cash rate at 2.5% even though it was stated that the New Zealand Dollar is overvalued. This helped the Kiwi recover after the fall in the earlier week. It was trading at 1.899 to the British Pound and 1.1917 to the US Dollar at the close of trade on Thursday.
The Kiwi Dollar continued its rise against most of the major currencies on Friday, on the back of the RBNZ announcement.
Monday saw the New Zealand Dollar make further gains against the US Dollar to reach a five and a half year high. This was due to improving US employment figures which underpinned a rally on Wall Street and stoked investor’s appetite for higher-yielding assets.
Composed by Trevor Brewer of 1st Contact
Exchange rates at 06:30 GMT, 5 February 2013
NZD/ JPY: 77.803
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