Forex News

The kiwi, how often the New Zealand currency is referred to, touched an eleven-month high versus the greenback and gained versus most of the 16 main traded currencies as international and domestic factors raised attractiveness for the high-yield profile of the South Pacific currency.

The New Zealand dollar started this week losing versus the greenback and the yen as higher-yielding currencies attractiveness declined while risk aversion grew among traders globally, shunning investors from assets in the South Pacific region.

The New Zealand currency is trading this week near to a nine-month high versus the U.S. dollar, as corporate earnings and stocks performance attracted investors to the riskier profile of the kiwi if compared to more conservative currencies like the greenback and the yen.

The New Zealand dollar posted its first climb in a week after a central bank statement which affirmed that the Southern nation will recover from the global slump at a faster pace than its main trading partners boosted attractiveness for the kiwi.

The New Zealand dollar is heading to the lowest rate in eight weeks against the yen and losing against the greenback, as global risk aversion is damping demand for the kiwi’s high-yield profile.

The kiwi, as the New Zealand currency is often associated with, posted gains versus most of the main currencies as the national interest rate remained uncut.

The New Zealand dollar rose for the fourth straight day against its U.S. counterpart and advanced for the second day versus the Australian dollar today, assisted by the signs of the global recession’s easing.

The Reserve Bank of New Zealand cut its benchmark interest rate from 3.0 percent to 2.5 percent to a record low level for the country’s economy.

The New Zealand dollar, followed by its Australian counterpart, fell for the second day on fears that the swine flu may deepen the global slump, affecting tourism and high-yielding assets.

The New Zealand and the Australian dollar went up as rumors about a credit market recover spread amid investors this Thursday.