(Bloomberg) -- New Zealand's dollar rose to its
highest since being allowed to trade freely in 1985 on demand
for the nation's relatively higher-yielding assets.
The currency has been buoyed by New Zealand's record 8
percent benchmark interest rate, the highest after Iceland's
among country's rated Aaa by Moody's Investors Service. It has
gained 36 percent against the yen in the past year as traders
borrow cheaply in Japan's currency to take advantage of higher
returns elsewhere, known as a carry trade. New Zealand's
official cash rate is 7.5 percentage points higher than Japan's.
Read more at Bloomberg Currencies News
highest since being allowed to trade freely in 1985 on demand
for the nation's relatively higher-yielding assets.
The currency has been buoyed by New Zealand's record 8
percent benchmark interest rate, the highest after Iceland's
among country's rated Aaa by Moody's Investors Service. It has
gained 36 percent against the yen in the past year as traders
borrow cheaply in Japan's currency to take advantage of higher
returns elsewhere, known as a carry trade. New Zealand's
official cash rate is 7.5 percentage points higher than Japan's.
Read more at Bloomberg Currencies News
No comments:
Post a Comment