The New Zealand dollar snapped a gain from yesterday amid speculation the Reserve Bank will make comments aimed at curbing the currency’s strength as officials set monetary policy at a meeting tomorrow.
The nation’s two-year interest-rate swaps fell for the first time in a week even after data showed building approvals surged to a 4 1/2-year high last month. Demand for Australia’s dollar was supported as Asian stocks rose before the Federal Reserve concludes a two-day policy gathering.
“New Zealand’s economy is relatively resilient, and policy makers dislike a stronger currency because of its effect on exports,” said Satoshi Okagawa, a senior global markets analyst in Singapore at Sumitomo Mitsui Banking Corp., a unit of Japan’s second-biggest financial group by market value. “The New Zealand central bank may say something” to help limit the kiwi’s advance, he said.
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