INDEPENDENT NEWS

NZ dollar hits 3-mth high vs. British pound after weak CPI

Published: Wed 14 Oct 2015 08:37 AM
NZ dollar touches 3-month high vs. British pound after weak UK inflation data
By Tina Morrison
Oct. 14 (BusinessDesk) - The New Zealand dollar touched its highest in more than three months against the British pound after UK inflation unexpectedly turned negative last month.
The kiwi touched 44.08 British pence overnight, its highest level since June 25, and was trading at 43.78 pence at 8am in Wellington, from 43.61 pence at 5pm yesterday. The local currency was little changed at 66.71 US cents from 66.62 cents yesterday.
The British pound weakened after a report showed consumer price inflation turned to an annual rate of -0.1 percent last month, missing economist expectations and matching April's record low. That may prompt the Bank of England to hold off raising interest rates from a record low, analysts said.
"UK CPI prices were weak, with a 0.1 percent annual decline," ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. "This saw GBP weaken overall."
ANZ expects the kiwi to trade between 43.40 British pence and 44.40 pence today, although it says the UK currency may be bolstered by upbeat employment data due tonight.
In local trading today, the focus will be on a speech in Auckland by Reserve Bank governor Graeme Wheeler on reflections on the world of central banking, which will be released at 9:10am.
ANZ expects the speech to cover a wide range of topics relating to monetary policy, the local outlook and how offshore investors perceive the local economy.
Also scheduled for release today is the government's annual financial statements and non-resident government bond holdings for September.
Traders will also be eyeing reports on Chinese inflation and Australian consumer confidence today, and US retail sales and Eurozone industrial production tonight.
The New Zealand dollar advanced to 91.68 Australian cents from 91.20 cents yesterday, weakened to 58.58 euro cents from 58.65 cents, edged up to 79.93 yen from 79.86 yen, and increased to 4.2305 yuan from 4.2213 yuan. The trade-weighted index advanced to 71.55 from 71.36 yesterday.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries
By: New Zealand Government
Grey Power Is Disappointed To Learn Of More Bank Closures
By: Grey Power New Zealand
Supply Chain On Brink Of Overload Says National Road Carriers
By: National Road Carriers
Annual Goods Trade Surplus At 28-year High
By: Statistics New Zealand
How Real Is That Bargain?
By: Commerce Commission
Births And Deaths: Year Ended September 2020
By: Statistics New Zealand
Okay Boomer: Kākāpō Wins Bird Of The Year 2020
By: Forest And Bird
Govt Goes “hard And Early” On RSE Workers
By: ACT New Zealand
Bringing RSE Workers Back The Right Move
By: Business NZ
Cream Of The Crop Will Get To Market
By: Auckland Business Chamber
Horticulture Industry Appreciates Government’s Decision On RSE Workers
By: Horticulture NZ
BNZ Optimistic About Year Ahead
By: BNZ
Māori Population Estimates: At 30 June 2020
By: Statistics New Zealand
View as: DESKTOP | MOBILE © Scoop Media