Hello subscribers! Welcome to the 7th edition of the Techemynt fortnightly newsletter. This week the content of the newsletter is dominated by analytics and NZDS hitting volume and transaction count milestones.
In the last fortnight, the US dollar hit a twenty-year-high after Federal Reserve Chairman Jerome Powell made comments where he stated America’s Central Bank will “forcefully” tackle inflation. This implies that large interest rate hikes are incoming in the country.
The Dollar index surged on the back of these statements because higher interest rates for dollars increase global demand for dollar exposure and deposits. The Dollar index which measures the US Dollar against a basket of 6 other major currencies surged following Powell’s statements and reached a price it has not reached since 2002.
The US dollar has gained against the New Zealand dollar in September despite market expectations of the Official Cash Rate (OCR), New Zealand’s equivalent of the Fed Funds rate, reaching 4.5%. The last time the OCR reached this interest rate was in 2008. The current exchange rate between NZD to USD is 0.61. This is the weakest the NZD has been against USD in 2022.