New Zealand dollarThe New Zealand dollar reached a new historical maximum against its North American counterpart and grew against some other world currencies today, as the US debt ceiling agreement spurred demand for high-yielding assets.
The kiwi (which is how the NZD is often called) renewed its historical maximums versus the US dollar and the euro today. It also reached a new high level in more than a year against the Japanese yen.
The global hunger for risk increased significantly as the President Obama announced that the political parties has reached a deal on the US debt ceiling last night. The debt limit will be raised by at least $2.1 trillion (up from the current $14.3 trillion), while the government spending will be cut by about $2.5 trillion over next 10 years. Improved certainty with the future of world’s biggest economy spurred demand for the high-yielding currencies among the Forex traders.
NZD/USD rose from 0.8785 to 0.8822 as of 7:30 GMT after reaching a daily high at 0.8842 today. NZD/JPY went up from 67.99 to 68.42 with a daily maximum at 68.87 — the record level since early May 2010. EUR/NZD fell from 1.6334 to 1.6304.
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Earlier News About the New Zealand Dollar:
New Zealand Economy Expands, NZD/USD Jumps to Record (2011-07-14)
China's Economy Makes Kiwi More Appealing, NZD/USD at Record (2011-07-13)
Search for Higher Yield Draw Investors to Kiwi (2011-07-06)
NZ Dollar Reaches Record vs. US Dollar on Business Confidence (2011-06-30)
Shrinking Trade Surplus Makes Kiwi Weaker (2011-06-27)
