The New Zealand dollar advanced today, trading near the all-time high against its US counterpart, after yesterday’s poor macroeconomic data from the United States triggered flight of traders from the greenback to other currencies.
The gross domestic product report showed that last quarter’s decline of US economy was much bigger than was previously considered. It led to speculations that the Federal Reserve will be required to postpone monetary tightening, which may derail economic recovery. Meanwhile, the Reserve Bank of New Zealand has already started its cycle of interest rate increases, giving boost to the New Zealand currency.
NZD/USD rose from 0.8737 to 0.8762 as of 11:18 GMT today, while its daily high of 0.8776 was near the record high level of 0.8779 reached on May 6. NZD/JPY advanced from 89.00 to 89.13.
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