New Zealand Dollar Gains on Improving Outlook for Economy

The New Zealand dollar gained today, reaching the highest level since March 2 against its US counterpart, as the New Zealand central bank was relatively upbeat about domestic economic developments. Businesses felt the same way as the business confidence improved.

The Reserve Bank of New Zealand was modestly optimistic in its semi-annual Financial Stability Report, saying:

New Zealand’s financial system remains sound and is operating effectively.

The business confidence reported by ANZ climbed from 11.0 in April to 14.9 in May. The report sounded very positive, stating:

The economy’s excellent adventure continues. Firms are upbeat, and prepared to hire and invest. That’s an economic expansion that is still going full steam.

NZD/USD climbed from 0.7091 to 0.7119 as of 11:10 GMT today. NZD/JPY advanced from 78.58 to 78.79.

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