Monday, July 23, 2007

New Zealand Dollar Gains to 81 U.S. Cents on Speculation Rates to Rise

(Bloomberg) -- New Zealand's dollar rose above 81
U.S. cents for the first time since being allowed to trade
freely in 1985, as investors are lured to the nation's higher-
yielding assets by the prospect of another rate increase.

The New Zealand dollar has gained 30 percent over the past
12 months, the best-performing major currency, as central bank
Governor Alan Bollard raised interest rates three times to a
record 8 percent. There is a 62 percent chance he will raise
rates at his monetary policy review July 26, according to a
Credit Suisse Group index based on interest rate swaps.


Read more at Bloomberg Currencies News

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