New Zealand dollar slides ahead of RBNZ Wheeler’s speech
March 11, 2015 8:05 am
The New Zealand dollar tumbled on bets Reserve Bank of New Zealand Governor Graeme Wheeler might imply further delays to raising interest rates tomorrow and despite concern a threat to contaminate infant formula might affect orders for dairy products.
Traders projected Wheeler would reduce rates tomorrow as a firm currency and cheap oil had fueled inflation, meaning he might need not to loosen monetary policy to increase the consumers price index between 1% and 3% target band.
Yesterday, the New Zealand government unveiled threats to contaminate infant formula with poison.
The kiwi on Wednesday declined to 72.37 US cents from Tuesday’s 76.90 US cents. It also ended at 95.21 Australian cents from 95.44 Australian cents, and ¥87.84 from ¥88.90.
Against the euro and the British pound, the currency closed at 66.73 euro cents from 67.59 euro cents, and 47.99 British pence from 49.38 British pence, respectively.
The last OCR statement was more bullish than some expected… if there was any hint “of a dovish tone the kiwi will get down to that low (71.70 US cents) more quickly than previously anticipated,” said Stuart Ive, Senior Dealer Foreign Exchange at OMF.
The material has been provided by InstaForex Company – www.instaforex.com
The New Zealand dollar tumbled on bets Reserve Bank of New Zealand Governor Graeme Wheeler might imply further delays to raising interest rates tomorrow and despite concern a threat to contaminate infant formula might affect orders for dairy products.
Traders projected Wheeler would reduce rates tomorrow as a firm currency and cheap oil had fueled inflation, meaning he might need not to loosen monetary policy to increase the consumers price index between 1% and 3% target band.
Yesterday, the New Zealand government unveiled threats to contaminate infant formula with poison.
The kiwi on Wednesday declined to 72.37 US cents from Tuesday’s 76.90 US cents. It also ended at 95.21 Australian cents from 95.44 Australian cents, and ¥87.84 from ¥88.90.
Against the euro and the British pound, the currency closed at 66.73 euro cents from 67.59 euro cents, and 47.99 British pence from 49.38 British pence, respectively.
The last OCR statement was more bullish than some expected… if there was any hint “of a dovish tone the kiwi will get down to that low (71.70 US cents) more quickly than previously anticipated,” said Stuart Ive, Senior Dealer Foreign Exchange at OMF.
The material has been provided by InstaForex Company – www.instaforex.com
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