NZD to USD Exchange Rate Declines as Dollar Rebounds

NZD to USD Exchange Rate Declines as Dollar Rebounds

On Tuesday, the NZD to USD exchange rate declined after solid gains last week, while the greenback rebounded.

The Kiwi plunged 0.01% to $0.71 as the currency initially retreated from its week’s rally last September 05.

Consequently, the market expects the NZD and the USD exchange rate to strengthen in the following days.

Moreover, New Zealand’s benchmark 10-year government bond yield soared to 2.02%, the highest level since April 2019.

Accordingly, Kiwi’s central bank kept the official cash rate to 0.25% as it stopped the interest rate hike last August.

Furthermore, the country sees success in curbing the Delta variant as the number of infections outside Auckland plummeted.

New Zealand will move to alert level 2 later at midnight, allowing people outside the outbreak’s epicenter to reopen offices and schools.

Meanwhile, the US dollar index inched up 0.11% to $92.14 as risk-on market sentiment eased.

Last Friday, the dollar index dipped 0.24% to $92.22 as nonfarm payrolls plunged 235,000 jobs from the expected 750,000.

The implications brought by the surge of coronavirus cases weighed heavily on the downbeat data.

Experts expected the Federal Reserve to maintain its dovish stance as the posted report disappointed the estimates. 

In addition, markets forecast that the tapering timeline could start in December 2021 or early 2022.

Consequently, the unemployment rate dropped to 5.20% from July’s 5.40% but did not move the greenback.

Meanwhile, the EUR/USD pair climbed 0.09% to $1.19.

GBP/USD pair also inched up 0.10% to $1.39, while AUD/USD pair plunged 0.03% to $0.74.

CHF Currency Gains amid US Jobs Report

Moreover, the CHF currency slightly strengthened after the disappointing US jobs report delayed the tapering timeline.

The Swiss franc edged up 0.01% to $0.91 after the series of declines last week. 

Furthermore, analysts turned their attention to the impact of Swiss inflation data on the market.

Switzerland’s second-quarter gross domestic product increased 1.80% from its previous 0.40%.

However, the reported data plunged from the forecast of 2.00%.

Meanwhile, the South African rand hiked 0.07% to $14.23 following its rally last Friday.

Then, experts look forward to the release of South Africa’s second-quarter gross domestic product today.

Furthermore, the Q2 forecast declined to 2.50% from its previous 4.60%.

Meanwhile, the Indian rupee soared 0.12% to $73.16.

Similarly, the Thai baht improved 0.02% to $32.47.

Likewise, the Chinese yuan modestly gained 0.01% to $6.45.

Then, the Japanese yen fell 0.05% to $109.78.

In addition, the Singapore dollar dropped 0.09% to $1.34.