New Zealand dollar falls on second wave concerns

The New Zealand dollar fell against most of its peers on Monday, weighed down by concerns over a second wave of coronavirus infections.


Banking and financial stocks in most global markets came under pressure amid expectations for some countries to reinstate another public lockdown.


Protests took place in France and the UK due due to government plans to re-impose lockdown restrictions, especially after British Prime Minister Boris Johnson told Parliament that his government was considering more strict lockdown.


The coronavirus death toll is now close to 1 million victims globally, and infections rose to 31 million cases.


Otherwise, New Zealand's credit card spending index fell 11.9% in August vs. a drop by 5% in June.


As of 18:00 GMT, NZD/USD fell 1.5% to 0.6661, after hitting a day high of 0.6778 and a low of 0.6652.

Attached Files:

Posted By laraparker : 21 September, 2020
Related Article

At 12:30 GMT, the US economy released its reading for the producer price index, which rose by 0.4% in September, beating forecasts of 0.2%, while the index rose by 0.3% in August.    The core reading (excluding food and fuel prices) also rose by 0.4%, better than forecasts of 0.2%, unchanged from the previous reading. This data is positive for the US economy.

Euro rose in European trade on Tuesday for the third session against dollar on hopes for US stimulus before the presidential elections in November.    EUR/USD rose 0.2% to 1.1793, after closing up 0.4% yesterday away from two-week lows at 1.1688.    The dollar index fell 0.2% on Tuesday for the third straight session against a basket of major rivals.    The decline came as haven demand slows on the greenback with sentiment improving and hopes renewed for US stimulus in upcoming days.    House President Nancy Pelosi and Treasury Secretary continue to narrow the disagreements on the stimulus plan.    Pelosi said by Tuesday, it should be clear whether a stimulus plan could be passed before the November elections.

The British pound rose against most major currencies on Monday, as the US dollar continued to weaken and investors rushed to riskier currencies.   Several members of the Bank of England, led by Andrew Bailey, had issued warnings about the coronavirus impact on the British economy.   The BoE Governor Andrew Bailey warned of the coronavirus downside risks, adding that it is even a higher risk on the UK's economy than a no-deal Brexit scenario.   The numbers of coronavirus infections continued to rise in the UK, while several other European countries are facing the second wave of the disease.   The coronavirus infections rose to more than 33 million globally, with a death toll of more than 1 million victims.   GBP/USD rose 0.7% to 1.2831 as of 21:41 GMT, after the pair hit a high of 1.2922 and a low of 1.2745.

Post your comment