New Zealand dollar up on pound, down on US dollar
The New Zealand dollar is rising against the pound but heading down against other major currencies.
The kiwi has fallen just below 70.5 US cents. That is a two-month low and compares to 74.72 cents just over a month ago.
The New Zealand dollar fell yesterday after Reserve Bank Assistant Governor John McDermott gave a speech in which he reminded people that another cut to the Official Cash rate is likely.
The US dollar is also gaining strength because investors believe there is a growing chance of a US interest rate hike in December, once next month's US Presidential election is out of the way.
The Federal Reserve has released the minutes of its September policy meeting and it shows the decision not to hike last month was a close call. The members who wanted to hike are concerned that if the Fed waits too long to lift rates it could unintentionally contribute to an eventual recession.
The New Zealand dollar has also been losing ground against the Australian currency.
It is trading at 93.47 Australian cents, compared to 97.57 cents a month ago. The kiwi fell about the same time people started talking about it achieving parity with the Australian currency.
The New Zealand dollar is going from strength to strength against the British pound.
It is trading at 57.7 pence this morning, after rising as high as 58.31 pence yesterday.
The dollar has not been this high against the pound in forty years.
Investors are concerned the UK will lose access to Europe's single economic market as a result of the Brexit vote.
The pound has been falling in recent days since British Prime Minister Theresa May confirmed that by the end of March the UK will begin the process of leaving the European Union.
She added that her government would prioritise curbing immigration ahead of retaining its access to Europe's single market.
The sell-off accelerated after the Bank of England warned there was a risk the pound could lose more value. Bank of England policymaker Michael Saunders told a UK Treasury select committee the pound's decline fall might not be a bad thing if helped British exports.
November of 1976 was an eventful time for the New Zealand dollar.
Back then the kiwi traded in a range between 95 US cents and 97.61 cents.
It traded between 59.74 pence and 58.32 pence.
The New Zealand dollar traded in the 77 to 78 cents range against the Australian dollar.
The kiwi was devalued by 2.7 percent on November 29, 1976. That followed a decision by the Australian government to devalue its currency by 17.5 percent. That was an attempt to give the Australian economy a boost.
The decision to devalue the New Zealand dollar saw it fall from 97.38 US cents on the November 28 to 90.63 US cents on the November 30, 1976.
The kiwi dropped from 59.01 pence on November 28 to 54.82 pence on the November 30.
But the kiwi gained in value against the Australian, due to the Australian government's decision to devalue. The Kiwi rose from 78.99 Australian cents on the 28th to 89.54 cents on November 30.