New Zealand Dollar Surges to Record on Business Confidence

The New Zealand dollar jumped today against its US counterpart to the all-time high as business confidence improved to the highest level in almost a year, boosting outlook for interest rates.

The National Bank of New Zealand reported today that 38 percent of businesses expect better times for the economy over the coming year, compared to 14.2 percent in April. That was the highest level of confidence since June 2010. The Credit Suisse index showed that speculators bet on increase of main interest rate by 65 basis points over the next 12 months, compared to expectations of 52 basis points growth a week ago.

NZD/USD went up to 0.8242 from 0.8161 as of 8:24 GMT today, following the advance to 0.8262.

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