Exchange rates: GBP vs Australian Dollar and NZ Dollar Print
Written by Sam Coventry   
Monday, 22 March 2010 10:38
The Pound Australian Dollar exchange rate and the Pound New Zealand Dollar exchange rate are both higher in morning trade.



The GBPAUD is higher by 0.21% with 1 GBP = 1.6435 AUD.

The GBPNZD is higher by 0.183% with 1 GBP = 2.1238 NZD.

"The British Pound fell a full percent against the Australian dollar on Friday following negative comments from an MPC member, which undermined demand," says a morning foreign exchange rate report from Caxton FX.

Andrew Sentence's remarks on the possibility of a "double dip recession" put significant pressure on sterling, which saw it slide across the board.
Continued positive sentiment toward the Australian economy has underpinned aussie strength, with the market fully pricing in an interest rate rise to 4.25% by June.

In trading this morning though, demand for the Australian Dollar has cooled following a surprise rise in India's interest rate late on Friday.

China and India have been major buyers of commodities lately and this has taken the Australian Dollar higher.

The rate rise will inevitably lead to less buying from India, which has undercut demand for the aussie.

Currently sterling has pushed marginally higher after most Asian markets slipped lower, with the pair now trading above 1.64.

Pound New Zealand Dollar exchange rates


The New Zealand Dollar also made strong gains against sterling on Friday as a warning came from an MPC member about the prospects for the UK economy.

The pound was down against another pairing, losing 0.6% as comments weighed heavily on the minds of investors in Friday's European trading.

In trading this morning, the kiwi has opened lower as investors show renewed caution about risk in the face of lower equity and commodity prices as well as persistent concerns over Greece's fiscal troubles.

The kiwi has also come under pressure from an interest rate rise in India, which has dampened demand for commodity-linked currencies.

Currently sterling is fractionally higher, trading 0.2% up with the price near 2.1250.
 
Last Updated ( Monday, 22 March 2010 10:41 )
 
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