New Zealand Dollar Climbs on G-20 Stimulus

The New Zealand currency has been one of the best performers among the 16 main traded ones in foreign-exchange markets, since the global economic recovery brought risk appetite back among investors which are purchasing assets in the South Pacific region heavily.
After the New Zealand government indicated that the nation’s economy grew in the last quarter dodging recession, the kiwi found support to climb for another week versus the greenback, making the current rally the longest since the kiwi’s rate were freely determined by market sentiment in 1985. This Friday, speculations suggest that the G-20 will extend its stimulus programs to revive the global economy, adding risk appetite towards the South Pacific region, one of the best bets in currency markets presently, as both the Australian and the New Zealand dollar rank among the top 5 performers versus the greenback in 2009.
Analysts indicate that as long as the scenario remains unchanged, the New Zealand dollar will continue to benefit from improved traders’ sentiment, bringing capital flows to the South Pacific region, which has been one of the most resilient economic regions after the credit crunch affected mostly wealthy nations in Europe and North America last year. The Group of 20’s position its economic stimulus adds to the already favorable outlook for the kiwi.
NZD/USD traded at 0.7192 as of 10:29 GMT from a previous rate of 0.7215 yesterday.

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