Pound jumps against Australian and New Zealand Dollars
The Pound has climbed by around 2.0% against the New Zealand Dollar this morning, while also leaping against the Australian Dollar. The Pound to New Zealand Dollar (GBP/NZD) exchange rate has reached interbank highs of 1.9060, while the Pound to Australian Dollar (GBP/AUD) currency pair has hit levels of 1.8206.
The Reserve Bank of New Zealand (RBNZ) shocked markets overnight when it announced a half-point rate cut and said there could be negative rates in future. The market was expecting a smaller quarter-point rate cut, but the dovish move has pushed the New Zealand Dollar firmly into the title of Q3’s worst-performing G10 currency so far, which has put significant pressure on the Australian Dollar too. A weaker global growth backdrop and trade disputes between the US and the Oceanic nations’ largest trading partner, China, have forced a more dovish approach to central banking in recent months. It’s hoped a rate cut could inspire domestic growth; the RBNZ has expressed concerns over softer inflation, employment, and economic expansion as a whole.
Today’s interbank highs so far:
GBP/AUD – 1.8206
GBP/NZD – 1.9060
GBP/EUR – 1.0872
GBP/USD – 1.2190
GBP/CAD – 1.6216
GBP/ZAR – 18.2224
(Rates correct as of 08:40 am BST)
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