Along with most of the major currencies, the NZD felt the heat of a broad strengthening in the USD overnight. The NZD/USD slipped from 0.7830 to around 0.7775. However, the NZD (and more so the AUD) has held up better than most, likely reflecting a break in the emerging markets currency crisis yesterday.
EM currencies stabilised yesterday after central banks in the region introduced another round of confidencebolstering measures. Brazil and Indonesia raised interest rates 50bps and India and Indonesia reopened emergency FX swap lines. The INR and IDR bounced more than 3%, TRL was up 0.4%, while BRL and MXN posted small losses.
Read the full report: FX Daily
BNZ