New Zealand dollar is gaining against some of the major currencies today, thanks in large part to the latest rate cut out of China. Kiwi is expected to remain relatively steady through the end of 2015, although the situation could change in the new year.
The People’s Bank of China recently cut its benchmark rates, making for the sixth time in a year that the central bank has adjusted rates lower. The news is helping Down Under currencies, including the New Zealand dollar. Because China is a major trading partner, the expectation of stimulus is providing hope for demand â and support for the New Zealand economy.
Over the last few weeks, the New Zealand dollar has performed reasonably well. Today, the kiwi is up against major currencies like the dollar, euro and pound. With concerns about economic growth in these other regions, the idea of a boost from China is helping the kiwi.
However, while there are expectations that the New Zealand dollar will remain relatively steady through the end of the year, things could change if other central banks amend their policies.
At 14:20 GMT NZD/USD is up to 0.6786 from the open at 0.6752. EUR/NZD is down to 1.6274 from the open at 1.6309. GBP/NZD is down to 2.2643 from the open at 2.2708.
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