The New Zealand dollar was the best-performing major currency this week, up 2.2 per cent, and on track for its first three-week winning streak since February.
The currency has benefited from a weaker US dollar as the Federal Reserve’s decision to opt against a rate rise in September. Soft US economic data that have prompted investors to push out expectations for a rate rise into next year.
But the NZD received a big boost this week – with a 2.2 per cent jump on Wednesday on comments by, the Reserve Bank of New Zealand governor, Graeme Wheeler, who indicated a preference for having “sufficient capacity to cut interest rates if the global economy slows significantly.”
That neutral tone caught markets off guard, given the central bank had already cut interest rates three times since June to 2.75 per cent and had previously said further easing in the cash rate seemed likely.
The New Zealand dollar is down 0.4 per cent today, but hasn’t fallen in 14 of the past 17 sessions.
The benchmark S&P/NZX 50 finished 0.8 per cent up on Friday, marking its sixth consecutive day of gains. That’s its longest winning streak since a seven day run to July 22 and also ranks as the second-longest so far this year.
The post New Zealand dollar best performing major currency this week, up 2.2 percent appeared first on Forex Circles.