New Zealand’s dollar was near the strongest against its Australian counterpart in three months after the smaller nation’s Reserve Bank said global economic growth will accelerate.
The so-called kiwi advanced versus most of its 16 major peers after the central bank left its benchmark interest rate at 2.5 percent. Demand for the New Zealand and Australian currencies was supported ahead of a Chinese report tomorrow that economists predict will show manufacturing expanded this month in the world’s second-largest economy.
“The global environment is favorable for the New Zealand dollar,” said Andrew Salter, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “The market has fairly reacted to the RBNZ’s optimistic outlook.”
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