The New Zealand dollar gained today as Fitch ratings raised the outlook for the nation’s credit rating from stable to positive, adding to signs that the New Zealand economy performs very well.
Fitch kept the credit rating at AA, two notches below the top grade, but raised the outlook to positive. The credit agency cited several reasons for such decision, among them “fiscal consolidation” that “is strengthening the resilience of New Zealand’s sovereign credit profile” and the fact that “the authorities have a credible plan to lift the fiscal surplus”. Indeed, Prime Minister John Key said that he expects the budget to demonstrate a surplus in the current financial year for the first time in seven years.
NZD/USD jumped from 0.8757 to 0.8794 as of 13:06 GMT today, while its daily high of 0.8806 was strongest since August 2011. NZD/JPY advanced from 89.19 to 89.38, touching the high of 89.63 intraday.
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