FX News

NZD/GBP Conversion:

The New Zealand Dollar (NZD) extended declines over most of the week breaking briefly below key 0.5000 (2.000) support against the British Pound. The first time since February this year. The GBP wasn’t able to sustain the level however, the kiwi back at 0.5070 (1.9720) in early Friday trading after equity markets improved. Fitch ratings agency has lowered its forecast of the UK economic outlook from stable to negative. Fitch saying the recent “fiscal” package announced as part of the government’s growth plan leads to significant fiscal deficits over the coming months. They expected the govt growth deficit would be nearly 8% of GDP compared to nearly 9% in 2023 unless they took offsetting measures. Meanwhile new PM Truss and finance Minister backtracked on their tax cut to top income earners, this caused UK gilt yields to fall sharply, this sent the NZD/GBP to 0.5000 (2.000). The RBNZ raised their key interest rate to 3.5% from 3.0% the fifth straight time the central bank has raised in this tightening cycle, the kiwi popping up to 0.5100 (1.9600) levels where it’s been able to hold around here into Friday.

The current interbank midrate is: NZDGBP 0.5069 GBPNZD 1.9727
The interbank range this week has been: NZDGBP 0.4987- 0.5115 GBPNZD 1.9547- 2.0052

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