The New Zealand dollar exhibited some recovery today, Wednesday, August 17, 2022. This development happened despite some foreign exchange experts expressing pessimism regarding New Zealand’s official currency.
We want to share this forex-related news report about the New Zealand dollar with our readers. We think reading this news will benefit them, especially if they are holders of units of New Zealand’s official currency.
The New Zealand dollar rallied today following the Reserve Bank of New Zealand or RBNZ, the country’s central bank, reinforced its hawkish policy position alongside its seventh straight interest rate hike.
New Zealand’s official currency gained 0.58 percent to US$0.6377 after the RBNZ increased interest rates by an anticipated 50 basis points, based on the Wednesday, August 17, 2022 report posted online by international news company Reuters.
At the time of writing this forex news, US$1 is equivalent to 1.58 New Zealand dollars, per foreign exchange conversion website Xe.com.
New Zealand’s central bank also pointed to the need to bring the timing of future interest rate increases forward.
Meanwhile, Kamakshya Trivedi expressed his perspectives on the New Zealand dollar before today’s RBNZ policy update. He is the Co-Head of Global Foreign Exchange Research at Goldman Sachs.
Based on the news report posted online by foreign exchange news source Pound Sterling Live, Trivedi cited that the New Zealand dollar has strengthened since the RBNZ’s July meeting.
He said this event had possibly dampened any worries relating to extra inflationary pressures through a weaker currency.
The Goldman Sachs forex expert remarked that, therefore, they could witness more idiosyncratic frailty in the New Zealand dollar from now on.
Trivedi cited that this situation is the case if the RBNZ decides to follow the United States Federal Reserve System in widening its benchmark to concentrate on the upside risks to inflation and the downside risks to growth.
He pointed out that such a result would be consistent with other foreign currencies’ broad performance after the recent major central bank conventions.
We are glad for the New Zealand citizens with this latest rally of their official currency. We also respect the viewpoints of Mr. Kamakshya Trivedi of Goldman Sachs.
However, we think today’s forex market can be unpredictable due to the many events affecting it that can materialize at any time.
Hence, we recommend our followers always monitor forex news, especially if they are users of the New Zealand dollar. In this manner, they will not feel panicked and can be proactive with their money.