Forex
Kiwi Surges Past $0.59 on Weak US Sales Data
The New Zealand dollar has reached its highest level since early June, trading at $0.590. This rise is attributed to the weakening of the US dollar due to reduced expectations for a Federal Reserve rate hike.
A recent US retail sales report showed unexpectedly weak numbers, leading traders to trim their bets on a Fed interest rate increase next month. As a result, the greenback has declined in value.
The New Zealand dollar is also gaining support from expectations that the Reserve Bank of New Zealand will deliver another quarter-point rate increase next month. However, concerns about how much further the RBNZ can tighten policy have been raised due to recent weak economic data.