The New Zealand dollar advanced today against its US peer as the nation’s central bank expressed positive outlook for the currency’s exchange rate. The kiwi was down against the Japanese yen.
The Reserve Bank of New Zealand mentioned in its Financial Stability Report some good developments in the global economy. Such positive changes “created a general ârisk-onâ environment which has supported a number of currencies such as the NZD”. The sentiment may worsen, but “a period of further strength remains possible, especially if “the case if New Zealandâs relative growth outlook continued to be perceived as favourable”. Graeme Wheeler, the RBNZ Governor said:
Itâs hard at this point to see any factor that would lead to a major depreciation in the exchange rate in the short term.
NZD/USD rose from 0.8268 to 0.8280, the highest settlement since September 28, as of 13:55 GMT today. Meanwhile, NZD/JPY declined from 66.43 to 66.21 and its daily low was at 65.85.
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