NZ dollar rises to two-month high against the Australian dollar
According to the latest data, the New Zealand dollar rose to its two-month high against the Australian dollar after inflation outlook and a surge on bonds in that country put pressure on the Australian national currency.
The Reserve Bank of Australia announced that it is lowering its forecast inflation track which might pave the way for a further interest rate cut in Australia. Data showed that the New Zealand dollar rose to 92.68 Australian cents and had earlier touched 92.81 cents, which is its highest level since early March.
The kiwi suffered a fall on Tuesday when theReserve Bank of Australia slashed its cash rate to 1.75 percent. The New Zealand dollar had fallen to 68.54 US cents due to pressure from a lower Australian dollar. The Reserve Bank of Australia has released its monetary policy statement today with forecasts and assumptions that convinced it to cut rates this week. The central bank forecasts underlying inflation of between 1 and 2 percent in 2016 indicating that it will not move back to its target range 2-to-3 percent.
There are also expectations that the Reserve Bank of New Zealand will cut the official cash rate to a record low 2 percent in June.
- Nikola Motors puts hydrogen fuel-cell semi truck Badger project on back burner
- BMW expands vehicle recall over battery issue to more than 4,500 U.S. plug-in hybrids
- Karma Automotive announces attractive price tag & unique features for upcoming GSe-6 electric sedan
- Twin River acquires iconic Bally’s brand from Caesars Entertainment for $20 million
- Wynn Resorts’ Encore to close for 3 days a week due to low demand