The New Zealand dollar rose to a one-month high against the greenback on Thursday after the Reserve Bank of New Zealand (RBNZ) said it is ready to raise interest rates next year, in what some analysts are calling the most hawkish comments from a major central bank.
The currency rose above US$0.8090 to its highest level since August 19 after RBNZ Governor Graeme Wheeler said that an increase in the official cash rate will likely be required next year, following the central bank's decision to leave its main cash rate unchanged at 2.5 percent during Thursday's policy meeting.
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"This is the most direct signal of monetary tightening that we have heard from any of the G20 nations and this bias should be extremely positive for the New Zealand dollar," Kathy Lien, managing director of FX strategy at BK Asset Management, said in a note.
The currency has gained over 2 percent against the greenback over the past three months and surged over 4 percent against its Australian counterpart during the same period.