NZ dollar gains on interest rate speculation

Story link: NZ dollar gains on interest rate speculation

The dollar was weaker again on Monday in late morning London currencies trade.

The euro and yen each added 0.2 percent versus the greenback, to $1.3803 and ¥121.66 respectively.

Inflation in the eurozone was reported to be at an annualized rate of 1.9 percent in June, below the European Central Bank’s target of 2 percent for the twelfth month in a row.

Sterling was 0.3 percent higher to $2.0394 against the US currency, and the New Zealand dollar had gained 0.8 percent to $0.7912 in relation to the US dollar.

The New Zealand dollar gained on speculation that the Reserve Bank of New Zealand will raise interest rates next week after new data showed that inflation there was higher than expected.

Besides its gain against the US dollar, the New Zealand currency also added 0.5 percent to an otherwise rallying yen, to ¥96.25.