New Zealand’s currency traded near its highest level in more than a week after a report showed employers increased hiring more than economists forecast, adding pressure on the central bank to lift record-low interest rates.
The kiwi has climbed 2.1 percent in the past week, the biggest gain among 10 developed nation currencies tracked by Bloomberg Correlation Weighted Indexes. Australia’s dollar held decline from yesterday versus New Zealand’s kiwi before a jobs report in the larger economy tomorrow projected to show the unemployment rate climbed last month.
“The labor-market statistics were very positive and another indicator suggesting that the Reserve Bank of New Zealand will need to raise interest rates probably in the first half of next year,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “With rate hike expectations rising up again, the kiwi has been dragged higher.”