(Bloomberg) -- New Zealand's dollar rose to the
strongest against the U.S. currency since it was traded freely in
March 1985 as investors purchased the nation's higher-yielding
assets with money borrowed cheaply in Japan.
So-called carry trades have helped the currency, known as
the kiwi, surge 32 percent against the yen and 23 versus the U.S.
currency in the past 12 months. New Zealand's benchmark interest
rate is 7.5 percentage points more than Japan's, enticing
investors to the returns on local bonds. Minutes from the Bank of
Japan's April and May meetings, released yesterday, boosted
speculation the 0.5 percent rate will remain unchanged.
Read more at Bloomberg Currencies News
strongest against the U.S. currency since it was traded freely in
March 1985 as investors purchased the nation's higher-yielding
assets with money borrowed cheaply in Japan.
So-called carry trades have helped the currency, known as
the kiwi, surge 32 percent against the yen and 23 versus the U.S.
currency in the past 12 months. New Zealand's benchmark interest
rate is 7.5 percentage points more than Japan's, enticing
investors to the returns on local bonds. Minutes from the Bank of
Japan's April and May meetings, released yesterday, boosted
speculation the 0.5 percent rate will remain unchanged.
Read more at Bloomberg Currencies News
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