Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ dollar hits 3-year high vs British pound

NZ dollar hits 3-year high vs British pound amid Brexit uncertainty

By Tina Morrison

June 28 (BusinessDesk) - The New Zealand dollar hit a three-year high against the British pound amid continued uncertainty about the outlook for the UK following that country's vote to leave the European Union.

The kiwi touched 53.67 British pence overnight, its highest since May 2013, and was trading at 53.02 pence at 8am in Wellington, from 52.72 at 5pm yesterday. The local currency dropped to 70.08 US cents from 70.65 cents yesterday.

The British pound slumped to a 31-year low against the US dollar as turbulence in currency markets continued after the UK voted late last week to exit the EU. The vote has caused political turmoil in the UK, sparking the resignation of Conservative Prime Minister David Cameron, as well as many Labour MPs, and revived calls for Scotland to separate from the UK. The UK's formal separation plan remains uncertain amid concerns that other EU countries may also split from the union.

"The markets remain a cauldron of volatility as lack of clarity on the resolution of Brexit continues to weigh heavy on financial assets," Boris Schlossberg, managing director of foreign exchange strategy BK Asset Management in New York, said in a note. "With both UK major parties in turmoil over the Brexit vote the political situation in the UK remained highly uncertain only adding to the volatility in the marketplace."

The New Zealand dollar was little changed at 95.33 Australian cents, from 95.32 cents yesterday. The local currency declined to 63.61 euro cents from 64.14 cents, weakened to 71.51 yen from 71.75 yen, slid to 4.6590 yuan from 4.6902 yuan. The trade-weighted index dropped to 75.54 from 75.89.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>