The New Zealand dollar climbed for a fifth day, reaching the highest in more than three weeks, after the nation’s central bank signaled it may raise its key rate from a record low earlier than previously expected.
The kiwi currency rose at least 0.5 percent against all 16 major counterparts after the Reserve Bank of New Zealand forecast bank bill rates will be higher than previously estimated in the first half of 2014, indicating the central bank may raise benchmark borrowing costs within that period. The Aussie touched an 11-week high as easing concerns the U.S. will attack Syria supported demand for riskier assets.
“The kiwi is rising because the RBNZ has brought forward timing for the first rate increase,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “The statement has been taken as a bit more hawkish.”
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