The New Zealand dollar had a good performance today gaining versus the dollar and the yen after government officials did not relate a strong kiwi with eventual delays in interest rate hikes, adding speculations that the South Pacific country is on the way to raise its benchmark interest rates.
The Reserve Bank of New Zealand Governor Alan Bollard declared that the current high levels for the loonie are not influencing eventual changes in national interest rates, which still remain at a record low of 2.50 percent, set after the worst moments of the global crisis struck the South Pacific economy in the beginning of 2009. Bollard hasn’t yet given solid evidences that interest rates are going to be hiked in the country, but such statement led speculators to become more confident that it is going to be any time soon, as well as the declaration influenced positively the kiwi in currency markets.
After Australia rose its interest rates due to its resilience to cope with the current crisis in both domestic and international scenario, New Zealand is likely to be the next wealthy nation to post an increase in the national rates as its present economic profile is very similar to Australia’s, making both the loonie and the Aussie to rank among the best bets in foreign-exchange markets in 2009.
NZD/USD traded 0.7551 as of 13:46 GMT from a previous rate of 0.7452 yesterday. NZD/JPY followed, from 67.90 to a current level of 68.66.
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