New Zealand dollar rose above 70 US cents

New Zealand dollar rose above 70 US cents

According to the latest data released, the New Zealand dollar rose above 70 US cents for the first time in around ten months amid speculation that the Federal Reserve might not raise interest rates and the Reserve Bank will not reduce its benchmark rate.

The New Zealand dollar rose to as high as 70.02 US cents and traded at 69.97 cents this evening in on from 69.21 cents yesterday. The trade-weighted index reached 73.50, which is the level recorded on 26 February, compared to 73.06 yesterday.

The New Zealand joined Australian and Canadian dollars in increasing against the US dollar as prices rose for commodities including iron ore and copper while the price of crude oil also recovered. Latest data from China showed that the trade and economic growth will ensure that the demand for the raw materials won't collapse in the world's second-largest economy. The weak economic data expected from the US will also indicate that that the fed will hold its rate changes.

Analysts said that the stronger inflation data in New Zealand means there's a bit less pressure for the Reserve Bank in the country on cuts and will convince central bank to hold its rates.