Kiwi dollar steady as markets await Brexit developments

Monday 21st October 2019

The kiwi was steady as markets await further developments on the Brexit front.

The kiwi was trading at 49.32 British pence at 7:55 am in Wellington from 49.30 late Friday in New York. It was at 63.78 US cents from 63.83 cents and the trade-weighted index was at 70.52 from 70.55.

Brexit ructions continued over the weekend with UK Prime Minister Boris Johnson forced to send a letter to the European Union requesting a delay.

Johnson sent the request note as required, but unsigned, and added another signed letter arguing against the delay. One of his most senior ministers said Britain would still leave the bloc on Oct. 31.

“We are going to leave by October 31. We have the means and the ability to do so,” Michael Gove, the minister in charge of no-deal Brexit preparations, told Sky News.

In a tweet, Donald Tusk, president of the European Council, said he had received the extension request and would consult EU leaders on how to react.

Meanwhile, the kiwi was also steady against the greenback as markets continued to expect the Federal Reserve to cut rates by 25 basis points at the end of the month.

“A softening in the US data pulse since the September FOMC meeting has confirmed a deceleration in economic activity across the board. Manufacturing output was weaker in September, as were retail sales and a host of other data,” said ANZ FX/rates strategist Sandeep Parekh.

The New Zealand dollar was trading at 93.11 Australian cents from 92.94, at 57.17 euro cents from 57.16, at 69.18 yen from 69.11, and at 4.5159 Chinese yuan from 4.5124.

(BusinessDesk)

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