New Zealand dollar suffers as rates hiked

Published: 24 Jul at 6 AM Tags: Euro, Dollar,

The New Zealand dollar has hit its lowest level in nearly six weeks. The country’s central bank has introduced its fourth interest rate hike in a row. The kiwi dollar is currently down almost a cent at $0.8606. The euro is also hovering around an eight-month low at $1.3461.

This means the dollar index is doing well and the US dollar has hit 101.54 yen. The euro is also up against its Japanese rival at 136.67 yen. However, the movement on the money markets has been limited and many analysts are putting this down to the fact that there has been no meaningful data issued from Europe or the US.

The euro is likely to come under renewed pressure as further stimulus efforts are predicted. The single currency has not been helped by the new sanctions imposed on Russia. Risk appetite on the markets has also been curtailed by the problems in Gaza and Ukraine.

The Reserve Bank of New Zealand has pushed up the country’s cash rate to 3.5 per cent. This is an increase of 25 basis points. The central bank is now on pause and feels the economy is responding positively to the higher rates.

The Australian dollar has also dipped slightly to $0.9443 after hitting a three-week peak of $0.9463.