The New Zealand dollar climbed today, paring yesterday’s losses, on speculations that the nationâs central bank will be the first among banks of developed nations to raise interest rates.
Speculators bet on 84 percent chance that the Reserve Bank of New Zealand will raise borrowing costs in the first half of the next year. It is surprising to see such optimism considering that just yesterday the outlook was rather pessimistic after a poor economic report. The rally of Asian stock also supported the New Zealand currency. The MSCI Asia Pacific Index of stocks rose 0.2 percent today after two days of decline.
NZD/USD climbed from 0.8236 to 0.8297 and NZD/JPY advanced from 81.08 to 81.76 as of 10:54 GMT today.
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