NZD/USD Near Three Year High at 0.8780

The New Zealand dollar hovered at its highest in nearly three years early on Friday, having taken on a starring role in a subdued currency market as investors sought higher-yielding currencies.

The kiwi rose as far as $0.8790, a high not seen since early August 2011, before edging back to $0.8780. It was near a post-float high of $0.8842.  Traders said the move highlighted the hunt for yield as investors looked for better returns in a generally low global interest rate environment.

With the Reserve Bank of New Zealand in a tightening cycle, the kiwi has become somewhat of a beacon to many investors. The RBNZ’s cash rate is currently at 3.25 percent, among the highest in the developed world.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.