A look at the weekly New Zealand/U.S. dollar (NZD/USD) chart shows a strong rally in the “kiwi” from around 0.5930 in late-June 2006 to the early-January readings just shy of 0.7100. Being one of the highest interest rates in the developed world at 7.25 percent has been a main driver for the gains in the kiwi dollar.
The Reserve Bank of New Zealand (RBNZ) meets next on Jan. 25. At its July meeting, the bank reintroduced a tightening bias, “given the rise in upside risks to the medium-term inflation outlook,” Sofat says.
No comments:
Post a Comment