Monday, July 23, 2007

New Zealand and Australian Dollars Surge to Highest in About Two Decades

(Bloomberg) -- New Zealand's dollar rose above 81
U.S. cents for the first time since it started trading freely in
1985 and Australia's currency gained to an 18-year high on bets
the nations' central banks will raise interest rates.

Most economists predict the Reserve Bank of New Zealand
will raise its key rate a quarter-point this week and traders
have increased bets of higher Australian borrowing costs before
a report tomorrow that may show inflation accelerated. New
Zealand and Australia's dollars are the second- and third-best
performing major currencies this month as prospects of higher
rates draw overseas investors to the nations' deposits.


Read more at Bloomberg Currencies News

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