New Zealand: New Zealand dollar reaches over two-year high against U.S. dollar
April 16, 2014
On 31 March, the New Zealand Dollar (NZD) traded at 0.87 USD per NZD, which was 3.4% stronger than the same day of the previous month. This figure represents the strongest end-of-the month print since July 2011 and follows on the 1.7% appreciation recorded in February when the currency traded at 0.84 USD per NZD. On an annual basis, the kiwi dollar was 3.6% stronger compared to March of last year. During the first two weeks of April, the New Zealand remained strong; the currency traded at 0.86 USD per NZD on 17 April.
The New Zealand dollar increased over the course of the last few months thanks to the country's rosy economic perspectives. Moreover, the Reserve Bank of New Zealand (RBNZ) began tightening its monetary policy stance in March, as previously announced, which had a positive impact on the currency. New Zealand was the first developed nation whose Central Bank raised interest rates since the U.S. began to taper its quantitative easing program in January 2014.
Panelists polled by FocusEconomics expect the exchange rate to end 2014 at 0.82 USD per NZD. For 2015, the panel sees the exchange rate closing the year at 0.80 USD per NZD.
Author: Armando Ciccarelli, Head of Data Solutions