New Zealand dollar collapsed against major currencies

October 20, 2017 11:35 pmComments Off on New Zealand dollar collapsed against major currenciesViews: 71

New Zealand dollarThe New Zealand dollar collapsed against major currencies due to political tension in the country. Today became clear that the leader of the Labor Party, Jacinda Ardern, will form a cabinet with the support of the nationalist party.

On the parliamentary elections on September 23, none of the leading political forces managed to win a convincing victory, putting the two major parties in the country ahead of difficult negotiations to form a cabinet. The long negotiations between the political parties failed to find stable majority and the last option was establishing a cabinet of the Labor Party and the nationalists.

“This is an exciting day for the country. We will be a government of all New Zaelanders, aiming to take advantage of the opportunity to build a fairer and better New Zealand”, said Jacinda Ardern.

The 37-year-old Jacinda Ardern will be the third female prime minister in the history of the country and the youngest leader in recent years.

The protectionist and anti-immigrant rhetoric of the future rulers, which demonstrated during the election campaign had a negative impact on the New Zealand dollar, which suffered the most severe collapse in a year. Compared to the US dollar, the New Zealand currency declined by about 2% to 0.7030. Against the Australian dollar, Kiwi collapsed by more than 300 pips, with the AUD/NZD pair ending the day at levels close to 1.1205.

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