New Zealand’s currency reached a four-month high against the dollar after data showed the South Pacific nation’s economy beat estimates in the second quarter.
Associate Finance Minister Steven Joyce said earlier this week that gross domestic product was estimated to have shrunk during the period. Australia’s dollar fell against most major peers as speculation the Reserve Bank will cut interest rates damped the currency’s allure even after the U.S. central bank maintained bond buying that has supported global asset prices.
“The kiwi currency obviously got a huge boost from the decision by the U.S. Federal Reserve,” said Khoon Goh, a senior currency strategist at Australia & New Zealand Banking Group Ltd. (ANZ) in Singapore. The GDP report “was seen as a positive by the market and that provided another boost.”
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