Friday, June 22, 2007

New Zealand Dollar Advances to 22-Year High as Traders Test Central Bank

(Bloomberg) -- The New Zealand dollar climbed to a
22-year high versus the U.S. currency as investors were lured to
the nation's relatively high yields.

The currency rose to the strongest since being freely traded
in March 1985, exceeding the level it reached June 11, when the
central bank sold New Zealand dollars, calling the gains
``unjustified.'' It has surged 26 percent in the past 12 months
as three benchmark rate increases to a record 8 percent, the
highest after Iceland's among Aaa-rated countries, enticed
investors to acquire 63 percent of the country's debt.


Read more at Bloomberg Currencies News

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