NZ dollar up as bank signals rate hike in November
The New Zealand dollar was up on Tuesday following rate hike expectations in November, while Australian currency also crept up awaiting the central bank policy meeting today.
The U.S. dollar and other major currencies were mostly steady. Investors are now on standby pending discussions in June’s Federal Reserve meeting after a surprised hawkish shift in the market. The minutes of the meeting will be published on Wednesday.
The euro was mostly not changing since Friday at $1.1860. The yen notched up a little to 110.86 per dollar. Sterling also climbed at $1.3857 following Britain’s decision to lift pandemic restrictions in two weeks.
The New Zealand dollar settled around $0.7055 in the market.
The Aussie rose 0.2% to $0.7541 but was capped awaiting the Reserve Bank of Australia (RBA) meeting.
ASB Bank pulls forward rate hike expectations in just four months as a business survey in New Zealand showed a huge improvement in confidence, a likelihood to increase prices, and numbers of firms with hiring issues.