The New Zealand dollar gained for the second day today as global stocks rallied and optimism about the economy of the United States spurred risk appetite among investors.
The MSCI World Index of stocks was up 1.8 percent since March 9, while the Standard & Poorâs 500 Index closed yesterday at its highest level since June 2008. The kiwi (as the New Zealand currency is often nicknamed) rallied also as the Federal Reserve considered the US economy is good enough to avoid a third round of quantitative easing. Some higher-yielding assets were under pressure as the US dollar rallied after the news, but the kiwi managed to rise on the resulting optimism.
NZD/USD rose from 0.8195 to 0.8238 and NZD/JPY climbed from 68.43 to 68.60 as of 14:29 GMT today.
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