AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,426 Increased By 94.3 (1.49%)
BR30 21,976 Increased By 345.9 (1.6%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

SYDNEY: The New Zealand dollar failed to get a lift on Wednesday after the country’s central bank hiked rates as expected and mostly stuck by its hawkish outlook, while the Australian dollar remained at the mercy of global recession fears.

With the policy move well priced in, the kiwi was left struggling at $0.6115 and just a whisker from a two-year low of $0.6098. Support lies at $0.6000 and $0.5920.

The Aussie was trying to steady at $0.6761, having touched a fresh two-year trough of $0.6711 overnight. It has support around $0.6680, but risks a decline toward $0.6460.

The Reserve Bank of New Zealand (RBNZ) raised its cash rate by 50 basis points to 2.5% and signalled it would continue to tighten “at pace” to restrain inflation.

Its policy-setting committee was “broadly comfortable” with the aggressive policy path projected back in May which saw rates nearing 3.5% by the end of this year and peaking around 4% in mid-2023.

Yet the RBNZ did note that near-term upside risks to inflation were balanced by emerging medium-term downside risks to economic activity.

“The committee acknowledged that clouds are appearing on the horizon,” said Marcel Thieliant, a senior economist at Capital Economics.

“Our view remains that the ongoing housing downturn will weigh heavily on residential investment and constrain household spending, ultimately forcing the bank to stop hiking once the policy rate reaches 3.5% by year-end.” The market reacted by nudging two-year swap rates down 5 basis points to 3.845%.

The Reserve Bank of Australia (RBA) is also expected to lift rates by another 50 basis points to 1.85% in August, though markets have recently scaled back the peak for rates.

Comments

Comments are closed.