Story image

NZ dollar rises to 2-month high vs. pound after report shows no British inflation

25 Mar 2015

The New Zealand dollar rose to a two-month high against the pound after a report showed Britain had no inflation last month, stoking speculation the Bank of England won't raise interest rates any time soon.

The kiwi hit 51.54 British pence and was trading at 51.50 pence at 8am in Wellington, from 51.10 pence at 5pm yesterday. The local currency advanced to 76.46 US cents from 76.28 cents yesterday.

The pound weakened after data showed British annual inflation hit zero for the first time on record in February, from a 0.3 percent pace in January, raising speculation it could dip below zero next month. The longer inflation stays below the Bank of England's 2 percent target, the less likely it is that the bank will raise interest rates any time soon.

"The news suggests that price pressures in UK remain non existent for the time being, leaving BoE on hold for the foreseeable future," Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York, said in a note. The pound "tumbled...in the aftermath of the release as traders pared any expectation of rate hikes to 2016."

In New Zealand today, traders will be eyeing the release of Fonterra Cooperative Group's first-half earnings for an update on the dairy exporter's forecast payout to farmers. Separately, trade data for February is also scheduled for release.

The New Zealand dollar was little changed at 97.18 Australian cents from 97.22 cents yesterday ahead of the release of the Reserve Bank of Australia's financial stability report today.

The kiwi advanced to 70.02 euro cents from 69.93 cents yesterday and gained to 91.50 yen from 91.38 yen yesterday. The trade-weighted index increased to 79.63 from 79.53 yesterday.

Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.
Moustache Republic expands Aussie presence with new exec
The Kiwi digital commerce partner has appointed a Sydney-based director to oversee the expansion of the company’s Australian footprint.
Epson’s new EcoTank range with two years printing per tank
With 11 new EcoTank printers that give an average user two years of printing and cost just $17.99/colour to refill, Epson is ready to change the game.
Te reo Māori goes global via language app called Drops
If you’re keen to learn a few words of Māori – or as much as 90% of the language, you may want to check out an Android and iOS app called Drops.
Reckon Group announces a steady profit in 2018
Reckon continued its investment in growth throughout the year with a development spend of $14.3 million.