NZ Dollar Climbs as Key Wins Elections

The New Zealand dollar jumped today against all other most-traded currencies after the nation’s Prime Minister was reelected with his party, spurring hopes that he’ll be able to improve the country’s budget balance.

National Party of Prime Minister John Key won the vote with 48 percent on November 26. Key said that his objective is to return the nation’s budget to surplus by 2014–15. The Business Confidence index halted its decline and rose from 13.2 in October to 18.3 in November, according to the National Bank of New Zealand. The speculation that Europe will be able to tackle its crisis and the rally of Asian stocks also helped the New Zealand currency.

NZD/USD was up from 0.7506 to 0.7570 as of 14:16 GMT today, following the earlier drop to 0.7478. NZD/JPY rose from 58.20 to 58.99 after reaching the daily low of 57.88.

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