AVN 68.28 Increased By ▲ 0.53 (0.78%)
BAFL 31.09 Increased By ▲ 0.11 (0.36%)
BOP 4.93 Increased By ▲ 0.12 (2.49%)
CNERGY 3.88 Increased By ▲ 0.12 (3.19%)
DFML 14.00 Increased By ▲ 0.02 (0.14%)
DGKC 42.77 Increased By ▲ 1.77 (4.32%)
EPCL 47.85 Increased By ▲ 0.80 (1.7%)
FCCL 12.22 Increased By ▲ 0.57 (4.89%)
FFL 5.28 Increased By ▲ 0.12 (2.33%)
FLYNG 6.26 Increased By ▲ 0.32 (5.39%)
GGL 11.09 Decreased By ▼ -0.20 (-1.77%)
HUBC 66.84 Decreased By ▼ -1.11 (-1.63%)
HUMNL 5.84 Increased By ▲ 0.14 (2.46%)
KAPCO 28.03 Decreased By ▼ -0.01 (-0.04%)
KEL 2.38 Increased By ▲ 0.11 (4.85%)
LOTCHEM 26.42 Increased By ▲ 0.22 (0.84%)
MLCF 22.44 Increased By ▲ 0.78 (3.6%)
NETSOL 87.60 Increased By ▲ 1.15 (1.33%)
OGDC 105.95 Increased By ▲ 5.46 (5.43%)
PAEL 11.43 Increased By ▲ 0.28 (2.51%)
PIBTL 4.28 Increased By ▲ 0.04 (0.94%)
PPL 83.84 Increased By ▲ 3.24 (4.02%)
PRL 13.66 Increased By ▲ 0.43 (3.25%)
SILK 0.95 Increased By ▲ 0.04 (4.4%)
SNGP 45.10 Increased By ▲ 1.20 (2.73%)
TELE 6.23 Increased By ▲ 0.16 (2.64%)
TPLP 16.10 Increased By ▲ 0.25 (1.58%)
TRG 124.38 Increased By ▲ 2.80 (2.3%)
UNITY 14.30 Increased By ▲ 0.30 (2.14%)
WTL 1.34 Increased By ▲ 0.02 (1.52%)
BR100 4,276 Increased By 95.2 (2.28%)
BR30 15,683 Increased By 412.9 (2.7%)
KSE100 42,467 Increased By 743.3 (1.78%)
KSE30 16,021 Increased By 275.4 (1.75%)
Follow us

SYDNEY: The New Zealand dollar jumped on Tuesday, buoyed by rising expectations that the its central bank will have to hike more aggressively and improved investor confidence, while the Aussie also reversed earlier losses.

Headlines that the Bank of England was likely to delay the sale of billions of pounds in government bonds in a bid to encourage greater stability in gilt markets boosted risk sentiment.

Sterling extended gains against the dollar.

The kiwi dollar rose 1.2% to $0.5703, having also jumped 1.3% overnight and pulling further away from the recent 2-1/2 year trough of $0.5512.

The Aussie had less luck, although it did reverse earlier losses to be up 0.6% to $0.6327 late in Asia.

It gained 1.5% overnight.

Australia, NZ dollars catch a breather after plunge as bearish pressure builds

Overnight, Britain’s finance minister Jeremy Hunt scrapped Prime Minister Liz Truss’s economic plan and scaled back her vast energy subsidy on Monday.

“FX markets are likely to remain driven by the Fed’s repricing, lingering UK risks and geopolitics, keeping FX volatility elevated,” said analysts at Barclays.

Official data on Tuesday showed annual inflation in the New Zealand ran at 7.2% in the third quarter, far outpacing expectations in a Reuters poll for a 6.6% annual rise. On a quarter-on-quarter basis, the consumer price index (CPI) rose 2.2%.

The blockbuster figures have prompted markets to price in a near 70% probability that the Reserve Bank of New Zealand would hike by 75 basis points at its policy meeting next month, with rates now seen peaking around 5.3%.

Two-year swap rates jumped to 5.13%, suggesting that markets have priced in another 25bp hike.

The likely hawkishness from RBNZ sent traders to buy the kiwi against the Aussie, which fell 0.6% to NZ$1.1080, the lowest level in more than a month.

The Reserve Bank of Australia on Tuesday also outlined the reasons behind its surprise move to go with a smaller 25 basis point hike, citing domestic and global uncertainties.

However, inflation ran at a 21-year high of 6.1% in the June quarter and is thought to have accelerated to 6.9% in the September quarter, which would pile pressure on the RBA to follow its global peers.

Comments

Comments are closed.

NZ dollar jumps on rate hike bets, risk-on rally, Aussie lags

Nation to hear good news about IMF programme soon: Ishaq Dar

Rupee gains 1.04%, closes at 270.51 against US dollar

No shortage of petrol, govt to take action against hoarders: Musadik Malik

Pak Suzuki raises car prices for second time in a month

Not received LHC order suspending resignations of 43 PTI MNAs: NA speaker

Court discharges case against Amir Dogar, orders his release

Qatar agrees to buy OGDCL, PPL shares

Islamabad court rejects Sheikh Rashid’s second post-arrest bail

India says debt talks in focus at G20 finance meet

Hopes fade as Turkiye-Syria quake toll at 17,500