FREANCE: The New Zealand dollar fell to a one-week low against the British pound after Bank of England governor Mark Carney said the next move in interest rates would be an increase, despite record low inflation.
The kiwi touched 50.68 British pence, and was trading at 50.71 pence at 8am in Wellington, from 51.03 pence at 5pm on Friday. The local currency was at 75.52 US cents from 75.58 cents at the New York close and 75.81 cents on Friday.
Mr Carney, speaking as part of a panel discussion at a Bundesbank conference in Frankfurt on Friday, reiterated that “the next move in interest rates is going to be up”.
“Sterling outperformed, following comments from BoE governor Carney that the next move in rates is likely to be up,” said ANZ Bank.
In New Zealand this week, traders will be eyeing the latest GlobalDairyTrade auction early Thursday morning, where prices may decline after Fonterra Cooperative Group said it would add more volume following higher-than-expected milk production.
New Zealand building consent data for February is due on Tuesday, while housing data is due Thursday. Markets will be closed on Friday for the Easter public holiday.
The New Zealand dollar touched 97.75 Australian cents over the weekend, close to its post-float record of 97.82 cents reached earlier this month. It was trading at 97.46 Australian cents at 8am from 97.13 cents on Friday.
