Monday, June 4, 2007

New Zealand Dollar Gains to Six-Week High on Talk of Benchmark Rate Rise

(Bloomberg) -- New Zealand's dollar rose to a six-week
high amid speculation central bank Governor Alan Bollard could
raise interest rates this week, buoying demand from investors who
borrow at lower rates overseas.

New Zealand's currency has gained 8.5 percent the past three
months as the central bank increased borrowing costs in March and
April to a record 7.75 percent. There is a 31 percent chance of a
quarter-point rise in the benchmark rate at the June 7 review,
according to an index calculated by Credit Suisse.


Read more at Bloomberg Currencies News

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