Forex – New Zealand Dollar Rises After RBNZ Keeps Rates Unchanged

Forex Distribution – The New Zealand dollar rose against its U.S. counterpart on Wednesday in Asia after the Reserve Bank of New Zealandkept interest rates unchanged but said there is scope if it sees the need for it to boost economic growth.

“The Monetary Policy Committee agreed that new information since the August Monetary Policy Statement did not warrant a significant change to the monetary policy outlook,” the Reserve Bank said in a statement Wednesday in Wellington after leaving the official cash rate at a record-low 1%. However, “there remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain our inflation and employment objectives,” it said.

The NZD/USD pair gained 0.2% to 0.6331 following the news. The AUD/USD pair was down 0.2% to 0.6788 by 11:41 PM ET (03:41 GMT).

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies rose 0.2% to 98.107 as investors watch for developments in the U.S. after House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump.

“The actions of the Trump presidency revealed the dishonorable fact of the president’s betrayal of his oath of office, betrayal of our national security and betrayal of integrity of our elections,” Pelosi said in remarks to the nation. “Therefore, today, I’m announcing the House of Representatives is moving forward with an official impeachment inquiry. I’m directing our six committees to proceed with their investigations under that umbrella of impeachment inquiry.”

Separately, Trump said at the United Nations General Assembly in New York that he will not accept a “bad deal” in trade with China. His comments kept markets on edge as the two sides prepare planned high-level talks in October.

“Hopefully we can reach an agreement that will be beneficial for both countries. But as I have made very clear I will not accept a bad deal for the American people,” Trump said.

The safe-haven yen fell even as Asian markets traded mostly in the red today. The USD/JPY pair last traded at 107.28, up 0.2%.

The GBP/USD pair lost 0.2% to 1.2466. The Brexit situation remained in the spotlight after the British Supreme Court ruled U.K. Prime Minister Boris Johnson’s decision to suspend Parliament was unlawful.

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