Mortgages

Kiwi Dollar Looks To Stay Strong

For the world's top-yielding major currency, the New Zealand dollar, the start of a monetary tightening phase in the United States is expected to hold little threat.

Sunday, July 04th 2004

But for the world's second-highest yielding currency, the Australian dollar, it definitely does.

That was the consensus from currency analysts after the US Federal Reserve made what markets believe will be the first of several interest rate increases.

The reason: interest rates still have room to rise in New Zealand, which will protect or even widen the country's yield premium, while rates in Australia are seen to be at or near their peak.

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