The New Zealand dollar rose today after the monetary policy meeting of the Reserve Bank of New Zealand dollar, which was considered to be hawkish by market participants.
The RBNZ kept its main interest rate at 1.75% as was widely expected. The central bank did not complain too much about the strength of the currency, even though it said:
A lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector.
The bank also said:
Monetary policy will remain accommodative for a considerable period.
Still, markets considered the statement to be hawkish enough to expect an interest rate hike sooner than was previously expected, though not likely this year.
NZD/USD rallied from 0.7201 to 0.7253 as of 11:01 GMT today, touching the high of 0.7273 intraday. NZD/JPY rose from 80.40 to 80.72.
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