After gaining for two consecutive days versus important currencies like the euro and the U.S. dollar, the kiwi currency didn’t manage to sustain its trend after central bankers in the country affirmed that lack of economic improvements in the South Pacific nation will delay interest rate hikes.
A reasonably high amount of optimism had been influencing currencies tied to growth to advanced in currency markets until this Wednesday, but as markets opened in New Zealand this Thursday, the kiwi’s attractiveness was considerably affected after Reserve Bank of New Zealand Governor Alan Bollard stated that the nation’s real estate market and credit availability are still factors of concern influencing the country’s monetary policy, signaling that interest rates aren’t likely to be raised in this year’s first semester.
Despite today’s bearish moment for the New Zealand dollar, the general scenario remains positive towards the kiwi, as the credit crisis in the country was far less significant than in Europe and North America, making the recovery easier to pull by the nation’s government and industries.
NZD/USD fell to 0.6980 as of 02:40 GMT from as high as 0.7096 before Bollard’s statements.
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