Dollar gains against pound
The kiwi jumped to 46.60 British pence at 8am in Wellington.
The New Zealand dollar rose against the British pound after Bank of England officials suggested that the UK's economic slowdown was due to more than just the risk the country could vote to leave the European Union.
The kiwi jumped to 46.60 British pence at 8am in Wellington, from 46.32 pence on Friday. The local currency was little changed at 67.56USc from 67.62USc at the New York close and 67.60USc on Friday.
The British pound had broadly improved last week on optimism voters would choose to stay in the EU in an upcoming referendum on June 23, benefiting the economy. However, it has since retreated after Bank of England officials Gertjan Vlieghe and Kristin Forbes raised doubts about whether Britain's economic slowdown was due solely to the risk of the so-called Brexit vote.
"The British pound fell as BoE officials suggested that the economic slowdown could be broadening beyond Brexit," ANZ Bank New Zealand senior economist Philip Borkin and senior foreign exchange strategist Sam Tuck said in a note. "These comments weighed on the British pound, together with some uncertainty regarding the latest Brexit polls."
ANZ expects the kiwi to trade between 46.20 British pence and 47.10 pence today.
The New Zealand dollar edged up to 93.63Ac from 93.50Ac on Friday. It was little changed at 60.30 euro cents from 60.33 cents, at ¥74.46 yen from ¥74.39, and at 4.4281 yuan from 4.4241 yuan. The trade-weighted index was at 72.89, up from 72.82.
(BusinessDesk)
Tina Morrison
Mon, 23 May 2016
Mon, 23 May 2016
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Dollar gains against pound
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