Sterling Rises As Scotland Vote Concern Ebbs; New Zealand’s Dollar slides

by on September 11, 2014 3:10 pm BST

The sterling advanced as the poll by Survation for the Daily Record newspaper in Glasgow put the No lead at six percentage points when excluding undecided voters, with 47 percent support for the Yes campaign and 53 percent opposed to independence. The results followed a survey by YouGov Plc last weekend that put the Yes side ahead for the first time, a swing that sent the pound tumbling.

Sterling rose 0.2 percent to $1.6242 after adding 0.7 percent in the past two days. The U.K. currency slid to as low as $1.6052 yesterday, the least since November.

New Zealand’s dollar dropped to the lowest in seven months after the nation’s central bank left its benchmark interest rate unchanged and said the level of the currency was “unjustified and unsustainable.”

A gauge of the dollar pared gains after initial claims for jobless benefits in the U.S. rose last week. The pound rose for a third day versus its U.S. peer after a survey showed supporters of Scottish independence lost ground a week before a referendum that could lead to the breakup of the U.K. The yen touched a six-year low after Bank of Japan Governor Haruhiko Kuroda told Prime Minister Shinzo Abe today the central bank will not hesitate to act if it risks missing its inflation target.

New Zealand’s dollar fell 0.3 percent to 82.02 U.S. cents at 9:21 a.m. New York time after reaching 81.61 cents, the lowest since Feb. 4. The kiwi will weaken to 80 cents by year-end, NAB’s Friend said.

The yen was little changed at 106.79 per dollar after touching 107.15, the weakest level since September 2008. The dollar declined 0.2 percent to $1.2946 per euro.

New Zealand’s currency fell versus most of its 31 major peers after the Reserve Bank of New Zealand kept its key rate at 3.5 percent and lowered its forecast for the 90-day bank bill rate, suggesting borrowing costs won’t rise again until the first or second quarter.