The kiwi, as the New Zealand currency is often associated with, posted gains versus most of the main currencies as the national interest rate remained uncut.
The Reserve Bank of New Zealand official cash rate remained at 2.50 percent as policy makers indicate that cuts will no longer be necessary to rescue the nation out of recession, increasing national and overseas investors to bet in the kiwi as an investment. Since the beginning of the global slump last year, interest rates in New Zealand had been cut sequentially, dropping from 8.25 percent year ago to the current level of 2.50 percent, a record from the country, as an attempt to minimize the effects of the global recession in New Zealand. Currently with an improved economic scenario favoring New Zealand exports and its high-yielding currency, the national central bank has indicated that no further cuts will be necessary for guaranteeing the nations economic health.
The scenario is very optimistic towards the kiwi, according to currency strategists. Since the global economic improved boosting demand for commodities and creating a significant bullish pattern for high-yield currencies, the New Zealand dollar has been witnessing gains with tend to follow for the mid-term future. The stabilization of the national interest rates added to the already growing confidence towards the New Zealand dollar.
NZD/USD traded at 0.6423 as of 11.13 GMT, raising from 0.6315 in the intraday comparison. NZD/JPY climbed to 62.80 from 61.75.
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