NZD Rises vs. USD as Current-Account Deficit Narrows

The New Zealand dollar rose against its US counterpart, but fell versus the Japanese yen today after data showed that the nation’s current-account deficit narrowed last quarter. The moves were not big as the market is quiet ahead of the Federal Reserve policy decision.

The New Zealand current-account gap shrank NZ$0.3 billion to NZ$2.2 billion in the first quarter of 2013 from the previous three months. Still, prospects from additional stimulus from the central bank prevented the kiwi from rallying too much. On top of that, tomorrow’s report is expected to show that economic growth slowed.

NZD/USD rose from 0.7983 to 0.7995 as of 12:04 GMT today. NZD/JPY was down a little from 76.09 to 76.06.

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